The Dwarven city of Phoenix Gulch is both built and partially carved from the stone in a gulch in the Ashmoore Mountains on Renglave. These are volcanic mountains and the gulch has been created by lava flow spilling out of a pressure release spout in the side of mount Ashmoore itself. Thus the town has been built and rebuilt three times (which is where it's name comes from) by its Baron Dolgrimm Stonehammer and his people over a continuous flowing lava river spilling into the cracked earth chasms below.
The city has been designed in layers and the smiths are as you might have guessed, stationed in the bottom layer of the city where they can use the lava river to fuel and heat their forges. The entire area is often coated in ash and embers drifting down from the skies being cast out of the volcanoes above.
There is a distant rumbling echoing down from the mountain tops, and a steady beat of ringing hammered steel echoing up from lower levels of the city laid out before you. As you enter the huge carved malachite walls of the city ash and embers dance about in the air currents here. Dwarves mill about their daily routines paying the odd glowing orange and white flurries no mind. Unlike the savage environment all around, the folks here seem uncharacteristically friendly and good-natured. An acrid strong sent of sulfur and molten rock wafts in the air carrying with it the sharp tin like taste of iron and steel carbon no doubt from the magma forges below. The heat from the flowing lava river beneath the city is so intense, the tiny hairs on your shin feel as if they are cringing back. Sweat trickles within your clothes and armor and the very air about you seem to weigh upon you with its humidity. Even your sweat is sweating.