The Nasgareth may look like elves, but instead were created by an entirely different divine being, which admired the elvish looks and traits, but wanted to create his own army instead. One without Love.
The city was cursed many years ago. Since then it has not stopped raining. The gutters are inhabited by eels and the doors are on the first floor, coated with pitch. On a bad day, you can see the water level rise above the ground floor windows. Carts have both wheels and bladders filled with air to keep them afloat. And yet everyone is surprisingly dry.