“ The PCs come across a town with a strange curse: Every morning, those who have grown up here wake up with the memories of someone else. They do not find this strange and have no idea it is happening. They calmly wake up and start these new lives as though they have always been that way.
The cause: A wizard who lived there was spurned by a maiden he was infatuated with. His attempt to manipulate her memories into believing they were already together and that she loved him went horribly awry.”
“ When you sleep, your soul briefly returns to the place where it was created/goes to when it dies, and seeks nourishment. Everybody's soul is created with a little link (or you could say a greater entity calls it back) to that place so that it can return easily, but upon death, the soul returns via that and annihilates the link as if returns.
Also, as an added thingy, you could say the entity supplying the link, or residue of the links themselves, (whichever) is the source of all arcane power.”