Windhelm ( Skyrim ) Windhelm , also known as the City of Kings , is a city located in northeastern Skyrim . It serves as the capital of Eastmarch Hold . It is also the oldest city in Skyrim , possibly the oldest city of man on Tamriel that is still standing , dating back to the Merethic Era . Segregation . After the eruption of Red Mountain , many Dunmer fled to Windhelm and settled in an area known as the " Snow Quarter . " The area has since been renamed the " Gray Quarter , " as all of the Dunmer have congregated in this area . Reasons as to why vary depending on who is spoken to within the city . Some say that the Nords of Windhelm sequestered the Dunmer from the other citizens in this " Gray Quarter " in reference to the Dunmer skin color . Argonians are also segregated from the Nord population and are forced to live at the Argonian Assemblage at the city docks . A decree by Ulfric Stormcloak forbidding the Argonians from living within the city ' s walls also exists . If the Imperial Legion takes over Windhelm , Brunwulf Free - Winter becomes Jarl , as a supporter of both the Dunmer and Argonians , he believes that the Argonians should remain outside of the city for their own safety , " because most of the folk in the city believe as Ulfric did , that outsiders should not be trusted . " Dialogue with Ulfric Stormcloak , Windhelm ' s current Jarl , reveals that he does not attend to the issues occurring in the Grey Quarter due to being too busy with the rebellion . The guards seldom patrol the Grey Quarter and their reasons vary , depending on the characters spoken to within the city . Despite the claims of Ulfric ' s racism towards anyone who is not Nord , High Elves seem to manage living in the city much better than the Dark Elves , despite the fact that the High Elves are the head of the Aldmeri Dominion . Niranye , an Altmer citizen of Windhelm , implies that it is because the Dark Elves refuse to conform that they live in squalor like they do , rather than because of Nordic racism . She manages to attain a moderate amount of wealth and owns a stall in the market . Likewise , the Dunmer Belyn Hlaalu is allowed to own a successful farm on the outskirts of the city where he employs an elderly Nord woman , and likewise shares the view that his kin need to stop complaining and work harder to make a home for themselves . However , despite all of this , Belyn still has to live in the Grey Quarter . When Windhelm rebelled against the Empire during the Skyrim Civil War , many Windhelm locals believe that they have been too lenient . The Nord populace consider providing shelter within the city and allowance of the immigrants ' own individual liberties as charitable . Some argue that the immigrants are allowed their own self - governing factions , and so should develop and police their own communities without relying on the Nords ' resources . Coupled with the fact that the immigrants are permitted their own laws and customs , are said to contribute to the city ' s high crime rate , and are allowed to remain neutral in the Skyrim Civil War , some think that the immigrants are more of a burden to Nord society than a benefit and that Ulfric should start imposing heavier taxes on them as compensation . It is suggested , through dialogue with Viola Giordano that the Dunmer ' s taxes can be raised at the Jarl ' s whim . Civil War . During 4E 201 , as the Skyrim Civil War rages on , Skyrim becomes a nation divided , and Windhelm becomes the new capital of the Stormcloak Rebellion , the main center of the entire Nord revolution against the Empire . Windhelm is governed by Jarl Ulfric Stormcloak , the leader of the Stormcloaks . Ulfric was chosen by the public as the new Jarl of Windhelm after his father , the previous Jarl , died . Ulfric believes that Skyrim should secede from what he believes is a corrupt crumbling Empire . This stance came about due to the aftermath of the Great War and the introduction of the White - Gold Concordat by the Aldmeri Dominion , though it was not until the Markarth Incident that Ulfric ' s rebellion truly started . Interactions . Joining the Empire during the Main Quest will set Windhelm as the location of the last battle of the Civil War . Quarters . Windhelm is composed of three quarters : Stone Quarter . The Stone Quarter is Windhelm ’ s central district ; the one visitors first enter when passing through the Main Gate into the city . It contains the marketplace and the most important shops and inn . Gray Quarter . The Gray Quarter was so named because of the large number of Dunmer that reside here . It was once named the “ Snow Quarter , ” but that was a long time ago . But , to the elves , the name “ Gray Quarter ” is one of derision , cruelty , and discrimination . They believe the Nord people of Windhelm have always seen them as outsiders and hated them because of it . Valunstrad . Translated from ancient Nordic , " Valunstrad " means " Avenue of Valor . " It is the oldest section of Windhelm and has the largest buildings in the entire city , including the ancient and majestic Palace of the Kings and the only purchasable property in the city , Hjerim . Purchasable property . After completing " Rescue from Fort Neugrad " for the Stormcloaks , or the full Civil War questline for the Empire , the house in Windhelm , Hjerim , costs 12 , 000 and can be purchased from the Jarl ' s steward . Assigned by the Jarl to serve the new Thane and protect the house , Calder is the Housecarl of Hjerim .