Originally a small town founded by Mardaneus, who during its construction had to agree to share his mind with Thelyron Hashnitor, Aleroth was famed for its healers who lost that ability to manipulate source in 1218 AD. Due to this and the orc bandit attacks there is very little in the way of activity; they have two patients, Simon and Verlat, who have been severally wounded and the knight Seth who fought through the orcish lines to request assistance with the plague in Rivertown.
At this time, the famed Divine One, Lucian was brought to the village by a white cat. Recuperating in the basement of Joram's home, on a journey to become, unbeknownst to him, the Divine One. Before his departure he released Mardeneus from his insanity and the shopkeeper George would be murdered by the vampire Tutamun.
Following Lucian's discovery of his role and gaining entry to the Council of Seven, the Black Ring, lead by Desdemona invaded the village to eliminate Mardaneus who had been chose as the leader of the humans at the council. Lucian would return to rescue the healer, driving back the Ring and their orc slaves.
By 1300 AD, Aleroth had become a large city, far extending from its original location into the south and east, crossing the river that lay there and the cursed abbey. Besieged by Damian's abominations following the removal of the shield that protected the city by Zandalor so the Dragon Knight could enter the Hall of Echoes and prevent the death of Ygerna; thus trapping Damian instead. Although the city was locked in battle, the Champions of Aleroth held their stead as best they could against the invaders.
Following the Knight's failed attempt, the city became besieged by Damian's Flying fortresses with Zandalor raising a new shield to protect against the armada, those within because trapped within its confines until the Dragon Knight was able to change to tide of the battle.
During the besiegement, the monks Abbott and Charles resurrected the spirit of the Engineer in order to recover lost book from the remnants of the Cursed Abbey. As a result the Engineer and his disciple Skulk slew one of the monks and imprisoned the other within the abbey's remnants, then raised the dead residing below the city in order to continue his quest vengeance against the monks who trapped him in the abbey. Due to this undead infestation, Nericon rose from the ground in the form of a tree and refused passage for all until the source of the infestation was resolved. Slaying the undead who got within range and those who ignored his warnings, spoken in elvish, a now considered dead language following the extinction of the elves.
Layout - Divine Divinity
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Layout - Dragon Knight Saga
To get to Aleroth, the hero must help repair of the Champions' fleet of zeppelins by completing the quest On The Road Again assigned by Zeppelin Master Page at Champion Harbour in the Orobas Fjords. Afterwards, Sepp can be asked to fly you to Aleroth.
You enter the city via the main gate into the Mardaneus Plaza district. Here you are involved in a tense scene with Dragon Slayer Commander Rhode, which eventually leads to her arrest by Captain Angharad of the Champions. You may wish to take a moment to activate the waypoint shrine in the southwest of the district, and observe the goings on here such as the Champions battling undead through the fence to the east. When ready to proceed, use the large elevator in the north to ascend.
Follow the passage over a bridge and eventually you reach the Great Market district. Here you'll find a handful of merchants selling wares outdoors and an angry mob to the north, in front of the Ministry that you need to enter for the Come to No Harm sub-quest of the main quest, Hall of Echoes Bound. Speak to Augustus to be granted permission to use the nearby waypoint shrine, which can take you into the Ministry.
Unlike Divinity II: Ego Draconis, the Dragon Knight is confined to Aleroth alone due to Damian's siege upon the Healer City. Meanwhile, the undead plague Aleroth in unprecedented numbers, threatening the city from within as well.
In the expansion, Aleroth has a dozen new merchants ready to do business, and many helpful citizens who are more than willing to help their draconic hero. There are over 30 quests to be completed in the city during the expansion. The Great Market and Mardaneus Plaza districts have been changed, and now contain several new sub-locations and characters. Additionally, the Crow's Nest, Lanilor Lane, and Source Square districts can also be explored for a total of nearly 40 new sub-locations in the city.
While you may still access the Battle Tower, you can also use the services of Aleroth's skill trainers (Caroline & Jonathan at the Ministry, Great Market), necromancer (Dr. West at the Circle of Trust Inn, Mardaneus Plaza), illusionist / alchemist (Chanelle at Chez Chanelle, Lanilor Lane), and enchanter (Bedwyr at the Phoenix Inn, Great Market) with all the advantages you've previously gained by upgrading Battle Tower platforms.
- In the Ego Draconis section of the game, it is possible to jump over the wooden barricade in Mardaneus Plaza using pillar in the elevator building closest to the barricade. Doing this, the player is able to access the battle between Champions and undead, the latter of which are killable and provide experience. Most of the Champions here cannot be interacted with aside from two that are simply labeled 'Man'. One of these Champions seems to be what is used to store the introductory conversation between Commander Rhode and Captain Angharad that occurs when the Dragon Knight first enters Aleroth, and interacting with this NPC will trigger the conversation to begin again, lacking the presence of any of the participants. A surprising amount of Aleroth can be explored beyond Mardaneus Plaza, though certain models such as the ground may not be loaded in. The player is able to explore all the way through Crow's Nest, Source Square, and Lanilor Lane up to the northwestern entrance to the Great Market, which is closed. Several items exist in this out-of-bounds area, including a Holy Basil, a Rope, and a Ginseng plant. 
- Found in DKS on the Xbox 360