Thomas's Forgotten Realms
Waterdeep's wealth and role as Gateway to the North makes it an obvious choice for a Thayan enclave. Representatives of Thay established an embassy in Castle Ward overlooking the Market between the Sutherlane, Mendever Street, and Trader's Way in 1370 DR. As an embassy, the building is considered sovereign territory of Thay, exempt from the laws of Waterdeep. However, the Lords of Waterdeep flatly rejected the Three Laws of the Enclave, refusing to compromise Waterdeep's sovereignty or countenance the sale of slaves within the city. Because the Red Wizards are careful never to conduct business within the embassy proper, it is in no danger of losing its sovereign status.