A city build on a spit of land jutting from within a lake, and a place of prestige to live, as expansion soon became impossible on the small island and ownership was passed down from generation to generation. The crystal clear lake water and beautiful surroundings made the land desirable to the point that a wall was eventually built to keep away jealous neighbors.
The Banner Saga
Rook's Caravan arrives at Sigrholm near the end of The Banner Saga. The inhabitants of Sigrholm are openly hostile towards the Caravan and Juno does not show up as she has promised. The caravan leaves without finding Juno and makes their way towards Boersgard.
"As Sigrholm approaches we fear the worst. The once calm lake surrounding it now looks like a bowl that has been flipped, proud homes sinking into muddy water. A side effect of the quake... What has the rest of the world become on the other side of those mountains?" — Rook, The Banner Saga, Part One, Chapter 6.