Xiltor

Each person has an assigned role; they're given this at a young age and are expected to conform to it perfectly. This includes everything from the town blacksmith, (Must be a dwarf, gruff but secretly kind-hearted) to the town drunk, (must be a human and sleep in a literal ditch every night). It's almost religious ritual in which someone is assigned their jobs and the Director is actually quite skilled at determining who is more likely to actually fulfill certain roles.

The citizens are absolutely aware that they are controlled by "the System" but tolerate it for perceived benefits and order it gives in the incredible monstrous chaos of the Beastlands. Breeding and families are specifically enforced, having been here for many generations now, bloodlines are tracked like cattle.

Laws in "The System" are very extreme, reflecting the Director behind them, so many infractions are met with firing or being "traded talent" to the Underdark with a, "that's business folks" attitude. The punishments are relative to the aims of the Director. Rehabilitation permanently changes people and "Retraining" is unpleasant and often completely unrelated to the offense, but overall not as bad as it could be. Threats are dealt with through ruthless expediency, while deviant behavior, regardless of where it falls on the human moral scale, the Director attempts to correct.

There are official authority stations, which are all filled with figures that are actually a bumbling, naïve fool and have a second-in-command who actually knows what's up and does all the hard work. These areas employ Kobold citizens that don't fit anywhere in the roles of Xiltor. These Kobolds are hard working and referenced as "backstage" servitors. They make sure to politely direct visitors to buildings such as the auditorium and famous Xiltor playhouse. Many posters encouraging people to report "strange behavior", "antisocial tendencies" or "subversive elements" are posted at these stations.

There is the Xiltorian Constable and an "internal affairs" department that watches them. It's rumored that there is secret detectives watching the internal affairs police. And supposedly an inner circle watching them, and so on up all the way to Kelpacitus, the Manager. Plus everyone watches each other and reports to the layer above. What's most impressive is that every layer keeps dossiers on everything. All of this is necessary "for security", or "for the safety of the people". People who object are "causing trouble" or are "dangerous" or "working with outsiders to damage our peaceful and prosperous society".

There exists places in town that are Absolutely Forbidden to anyone that is unauthorized. Kelpacitus, the Manager, currently is the only authorized person and visits those areas in order to pass along the Director's intentions. Investigating too deeply into the inner workings of this popular town, that is quickly becoming a city, is not socially tolerated.

The System contains a lot of victimless crimes, ones that are deemed to be needless, such as people have to walk on the right side of the road. People have to knock on the door of an establishment 3 times even if the door is already opened. There should always be an even number of things bought or sold. Minor rules like that are easily broken and punished harshly, though they are posted in fine print legalese.

Sometimes people are not as talented as the roles, (tropes) that they attempt to fit into. Like the blacksmith is suppose to be a Dwarf, but it's actually a Halfling pretending that they're a Dwarf. Or the priest doesn't actually know the correct name of the god he's worshipping.

The Thief who can't actually sneak, pick locks, or basically do any thieving but instead just climbs in through open windows and rummages in the dresser. Nobody stops him because, "He's The Thief. That's what he's supposed to do."

New building code for public structures: Stairs and other "angled access" are forbidden. Access to upper and lower floors must be made friendly to, "levitating bodies of noble girth" via round portals parallel to the foundation. Temporary access such as ropes and movable ladders shall be provided for limb-bound locomotion.

Everyone in the town is administered eye exams, and anyone who doesn't get at least 20/20 has to wear glasses. Lots of older people have reading glasses or bifocals hanging around their necks. There's rumored to be one blind man being hid in an attic by his family, but as of yet no confirmation has been made of his existence.

Adventurers (Murderhobos)

Now that the area is incredibly well traveled, the townspeople also know how to deal with people that aren't part of The System. Every time adventurers stray from whatever "Normal Adventurers" do, the townspeople try to force it, like the bartender desperately trying to figure out how to get the adventurers to start a bar fight, because "That's what adventurers do", and the guards finally just arresting them anyway, because "All adventurers spend their first night in jail".

A guaranteed resurrection is in effect for anyone that gets inexplicitly murdered for no reason and every building is equipped with special unknown areas where "real" valuables are stored. All mundane valuables that are stolen are replaced by the next day by the Management Team by prespecified inventory sheets. Citizens are encouraged to act unaware and to go along with any adventurer antics. This usually provides great comedic fuel for their popular plays that draws in all denizens of the Beastlands.

There is a strict ban on Beastlands denizens, under the sway of other Beast Lords, to slay adventurers except in self defense.

There is town a quest board, (because "All Inns Have A Quest Board") with really low-level "quests", and if adventurer's do them, the town's reaction is way out of proportion - like having a Heroes Feast for killing three Goblins in the Toadsquat Mountains. This has confused many adventurers just starting out where they stopped by this town at the beginning of their career, their first few quests are met with over the top rewards, then they travel elsewhere to the next settlement and complete a job just to get a jarring and weird "Here's some gold, there's more work if you want it" attitude.

Even children are prepared for assigned roles in families. The first born is raised to be dutiful, the middle child is left to fend for themselves and the youngest born is raised by different rules entirely.

Passion for Fashion

Bells on your shoes, sleeve cuffs, on your bags, and braided in hair. Travelers think it an odd turn of fashion, but the villagers are just desperate to not be suspected of plotting treachery. The town is alight with the sound of tinkling bells at all hours of the day, (and unfortunately at night as well), and it's beginning to drive everyone a bit mad.

At least, that's the way it was last week. Staying on top of fashion in this city is a life and death affair.

Education

Everyone is educated within their designated role. Before, that they are institutionalized in a public school. In school there are beginning roles, such as: someone has to be the bully, the know-it-all bookworm, one that falls down the well or gets lost on a regular basis and the child-adventurer who gets into trouble trying to 'hunt monsters' in the woods with a wooden sword.

Festivals

Throughout the year grand battle or wars are staged during festivals that showcase racial tropes, divine comedies and "the triumph of good over evil" where the "good" ones always win and the "evil" ones are very mustache twirling. The monstrous denizens of the Beastlands especially love the depictions of the Orc wars where 'Gruumsh' and his 'orcs', (kobolds dressed up fearsomely) battles 'Corellon' and his 'elves', (humans dressed up with pointy ears). Or even better, the Crown Wars where Elves viciously murdered each other during the Time of Elves. Many of these festivals are held at night in which denizens of the Underdark are cordially invited for a chuckle.

Entertainment

There used to be gladiatorial fights in special rings that were immensely popular in the Beastlands, called Thundark, but the Director was rarely satisfied and would disintegrate both combatants. It has been a long time since this practice occurred.

It is often suspected that the people that live here, actually like society set up this way - making the neighboring weakened merchant nation of Durpar incredibly nervous seeing this "The Real Evil is Man" philosophy not only play out, but be incredibly successful. 

The Underdark respects Management Team's domain and never raids in this area, instead lawfully trading at specified nighttime trading centers, giving Xilthor a competitive advantage to other areas in many aspects. The surrounding nations are terrified of what the Underdark might do if the Management Team is removed.

Access Tunnels. Underneath the town there exists access tunnels that have been carved out. The smooth tunnels extend vertically more than they do horizontally.

Cure for Perfect Vision. It's said the Director is on the brink of curing blindness and other vision ailments permanently for all citizens.