Waterdeep is the largest city in Faerun, its fortunes built on its economic might. This in turn is based on both its deep natural harbor and the famed tolerance of its residents. Known as the City of Splendors, Waterdeep is a place where anything might be bought. The city is ruled by a council of masked lords, their identity masked even from each other. Ruling publicly is the Open Lord, currently Laeral Silverhand. She ousted the previous open lord, Dagult Neverember, in 1489. He was not well liked. He was widely viewed as corrupt and favoring the interests of Neverwinter over Waterdeep. The rumor is that he embezzled half a million gold pieces (called 'dragons') from the Waterdhavian treasury.
Key to the day to day operations of the city are the guilds and the nobles. It is said that no business gets done without the involvement of at least one guild, and often several. It's illegal for the guilds to interfere with someone who wants to do the work themselves, but it's not unheard of for untoward things to happen to someone who, say, wants to roof their own inn. There are 76 noble families in Waterdeep, from famed families like the Amcathras (whose scion became Lord of Shadowdale); the Cassalanters, wealthy moneylenders; and the Wands, a family of powerful and noble wizards; to lesser known families like the Gralhunds and the Muccilleighs.
The date is the first of Ches, 1492. Dagri and his crew: Yinrick, Chip, and Hank are heading to the Yawning Portal to meet up with a new contact, Yagra Stonefist, who had said they knew someone who had some work. Lord Cuysen Muccilleigh and Essex are enjoying the hospitality of the Yawning Portal. In just three weeks, the twin festivals are set to start; first, Fleetswake on Ches 21, and then Waukeentide on Tarsahk 1. The streets are full of rumors. A sea captain named Zardoz Zord just arrived in town with a trio of carnival ships. His troupe, the Sea Maidens Faire, are here to entertain the city curing this festival season. Meanwhile, the tensions between the Zhentarim and the Xanathar Guild have been heating up, with some worriers talking about a gang war. Responsible people don't think it'll come to that.
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