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Dwarven Settlement
Dwarves are driven to over-engineer. Their basic settlements are tiny
fortresses. Each one allows you to recruit and support three Dwarven
heroes. The Dwarven Settlement has automated defenses that attack any
monsters that approach too close.
Main Function:
Home for Dwarves.
Prerequisites:
You must have a level two Palace and a level three Blacksmith. In addition,
you cannot build these if your kingdom contains any Elves or Gnomes.
Level One:
Lets you recruit up to three Dwarves.
Fires defensive bolts at nearby enemies.
Allows you to build Ballista Towers.
Elven Bungalow
The bright blue roof of an Elven Bungalow loudly proclaim the Elven
presence. Each Bungalow lets you recruit and support two Elves. The
downside of hosting Elves is that they bring their Elven Lounges and
Gambling Halls with them.
Main Function:
Home for Elves.
Prerequisites:
You must already have a level two Palace, a Marketplace, and an Inn. In addition,
you cannot build this if your kingdom contains any Dwarves or Gnomes.
Level One:
Lets you recruit up to two Elves.
Increases all Marketplace income.
Causes an Elven Lounge to appear.
Causes a Gambling Hall to appear, when combined with a Rogues Guild.
Fairgrounds
A place for festivals, jousts, and tournaments, the Fairgrounds can help
boost your heroes’ experience. Heroes can visit the Fairgrounds to train
and thus increase their combat statistics—for a price.
Main Function:
Provides level advancement without the risks of real combat.
Prerequisites:
You must have a level three Palace. 
Level One:
Offers experience training to heroes in exchange for payment.
Research Tournaments in order to train heroes in hand-to-hand combat,
archery, magical warfare, or a combination of all forms of battle.
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