Markarth ( Skyrim ) Markarth , also known as Markarth Side , is one of the major cities in Skyrim . It is known for its rich silver mines , which are mostly owned by the influential Silver - Bloods family . The cutthroat intrigue surrounding Markarth ' s silver producing industry popularized the local saying , " Blood and silver are what flows through Markarth . . . " The city is located in the far west of Skyrim , in the mountains of The Reach , west of the Karth River . As a result , the city has a good natural defense , even from the skies . Being a long distance from any other major city and with both main roads cutting through mountains , valleys and rugged terrain , venturing to and from Markarth is one of the most treacherous trips for travelers . The city is split by a large running river and comprises two parts : Riverside , where the native Reachmen and the working district are found ; and the Dryside , housing all the houses of Nord nobles and Silver - Blood ownership . The Jarl ' s palace , Understone Keep , is located at the top of the city and contains the Hall of the Dead , the Dwemer Museum , and the Nchuand - Zel Excavation Site where the internal part of the old Dwemer city remains in ruins . Most of the city ' s residents tend to be quite unfriendly to outsiders . History . Origins . Markarth was the former city of Nchuand - Zel , belonging to the ancient Dwemer ( also known as the Dwarves ) who resided in Morrowind , Skyrim , Hammerfell and High Rock during the Merethic Era and First Era . Following the disappearance of the Dwemer from the face of Nirn after they attempted to control the power of the Numidium , Markarth was abandoned until the natives of the Reach known as Reachmen , moved into the city . The rise of High King Olaf One - Eye , who expanded Skyrim ' s boundaries when he conquered the Reach , saw that the city be turned over to Nord control . Establishment . In gratitude for the service of the Tongues in Tamriel ' s long history , Emperor Tiber Septim established the Imperial College of the Voice in Markarth , which was dedicated to returning the Way of the Voice to the ancient and honorable art of war . So it may be that the mighty deeds of the Nord heroes of old will soon be equaled or surpassed on the battlefields of the present day . Unlike the Dwemer cities and strongholds located in Morrowind , Hammerfell and High Rock , the city of Markarth was not constructed out of metal , but instead was built out of stone . According to Amanda Alleia , a mercenary in Markarth , Dwemer miners had cut out the city from the mountains , which probably means that the external part of the city that ' s outside of the mountains was built by the Dwemer themselves . The Forsworn Uprising . In 4E 174 , Markarth , and the Reach as a whole , were subjected to what is known today as the " Forsworn Uprising . " While the Empire was beset by the Third Aldmeri Dominion in the Great War , the native people of the Reach , called the Reachmen , took this opportunity to seize control of the city . This was only possible as the Imperial Legionnaires stationed in Markarth were recalled to fight , leaving the city highly vulnerable . Jarl Igmund ' s father , Hrolfdir , was Jarl at the time , but could not quell the uprising and was driven out of the city . The rebellion was successful and the Reachmen ruled over Markarth and The Reach as an independent kingdom from Skyrim from 4E 174 – 176 . According to one Imperial source , the kingdom was relatively peaceful during this time ; the Reachmen allegedly ruled their lands fairly , and even made overtures to be recognized by the Empire as a legitimate kingdom . Others claimed that it was a chaotic uprising and that Markarth ' s nobles grew desperate when the Reachmen refused their offers of peace . Markarth Incident . Desperate to reclaim the Reach , Hrolfdir and his family enlisted the aid of Ulfric Stormcloak and his militia , promising them free worship of Talos in exchange for their assistance . Ulfric accepted , and his troops reconquered Markarth from the Reachmen soon after . The returning Legion , coming back to restore order in Skyrim after the Great War , was refused entry into Markarth until they granted free Talos worship . The Empire accepted , however , agents of the Aldmeri Dominion discovered the Empire was violating the terms of the White - Gold Concordat , and demanded the arrest of Ulfric and his men . The disillusionment of Ulfric and his men over what became known as the Markarth Incident would prove to become one of the direct causes of the Skyrim Civil War . In the aftermath of the Markarth Incident , the Reachmen took on the name of the Forsworn and fled to the highlands to continue their insurrection against the Nord nobles ' control over the Reach . Residence . When the Jarl approves the Dragonborn after helping the people of Markarth , they become eligible to buy Vlindrel Hall for 8000 from his steward , Raerek . Vlindrel , like the rest of the houses of Markarth , is built in the Dwemer architectural style with a large golden door leading into the cliffside . The house is the highest of every residences of Markarth and gives a great view of the city ' s buildings , waterfalls , and mountains of The Reach . Nearby points of interest . The following is a list of some surrounding points of interest :