The aquatic elves of Cay Bay are no strangers to the backwater courses of the swamp, and an extant race of Alluvial Elves can be found there. The Mire Giants and some fey races are friendly with these elves, but as they travel along human waterways such elves often go unseen by surface dwellers. Wariness towards land races have made them nearly mythological to civilized folk. This is their primary reason for living outside Empire Barrier Reef and far away from Jetty Lighthouse (the only safe ship entrance inside the reef).

The elven village in the bay is Peduncle, a city of aquafarmers. It is carved from an oyster reef, and is home to nearly 700 aquatic elves. Peduncle, located 50 miles northwest of the only opening in the reef (due to hurricane damage), is one of fifteen satellite thorps, hamlets, and villages that owe fealty to the metropolis of Sargassum.

Leader of Peduncle: Cirri of Peduncle, female aquatic elf Brd7/Rgr6; AL NG; Survival 12; Weapon Focus (net); Animal companion "Tenguzame" (Huge animal, goblin shark, HD 10d8+20, Spd 60 ft. swim, AC 15). [The pink tinted goblin shark is a real animal — it looks like a snaggle-toothed, beaked gargoyle with a carpenter trowel projecting forward from its forehead.]

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