What faction do you think rules this settlement ... ?
Perhaps it is the location of the colledge of whispers or synod rival to the winterhold mage guild in where they support necromancy or empire !
Perhaps the settlement is recently founded by the sudden rise in power to argonians in morrowind in where dunmer are captured enslaved and returned to morrowind !
Perhaps horme settled there after the rebuilding of whitrun !
reference proving Marthal is real location in skyrim
http://imageshack.us/photo/my-images/155/marthalp.jpg/ screen cap is from http://www.youtube.com/watch?v=5xwboyafbwc#t=04m52s
so what do you guys think the story behind marthal's existence will be ?