A group of hardy people banded together and decided to live on the edge to keep them away from predators.
(Note: The village looks bigger when seen in person than depicted in the picture, I promise :)

Useless tip: set your draw distance to normal or short because fog looks beautiful on hilly terrains.

Link to a bigger picture.

Additional Notes

Features:

1. Farmer's cottage.
   
2. Windmill.
   
3. Inventor's house.
   
4. (Supposedly) Weather control tower / alchemist tower.
   
5. Hermit's hut.
   
   
6. Skyport quarter.
   
7. Marine wildlife observatory (mini-submarine not included).