Cawthorn isn't a town, isn't quite a village yet, but Theo thinks it's going to be a nice place to live in when it's done.
There are, mostly, two kinds of people who come to live in Cawthorn: the desesperate, and those who want to learn.
(Theo has heard the tales of Sea Monsters attacking the coasts of Far East countries, drowning entire towns under gigantic waves and dragging whole ships down to devour their crews. He knows that even the inlands aren't safe, the monsters swimming up rivers to destroy villages there. He has heard of the people fleeing their homes to safer lands, and of the way Ahane Kenta took advantage of the chaos to build himself a moving kingdom from the stolen and the desesperate.)
There are more and more people from the Far East, coming to the kingdom with the intention to live there, and they are oft assumed to serve Ahane Kenta and distrusted for it, rejected, persecuted sometimes, and the knowledge that Cawthorn not only would accept them, but was also home to a dragon who would protect them without asking for anything in return, has led to a quickly expanding community to form around the Tower.
(Theo has seen the rejection turn to violence, has seen the way his Father's people reacted to them merely passing by, and he doesn't blame them.)
(Most of the people in Cawthorn come from the Empire of Ippon, and had to brave the sea monsters before they could leave it behind and start over in a foreign land. They are more brave than they are scared.)
Desesperate people come to Cawthorn, looking for safety and a taste of home, and there they meet people looking for a way to learn.
(The University is a place of learning, yes, but only for the great, only for the rich, only for the powerful, only for those looking for a knowledge it wishes to share.)
There are people who wished to learn, but can't, because they aren't great, or rich, or powerful, because what they want to know the University doesn't wish to share, and they hear about the Wallises' Books, and they come to Cawthorn.
(Theo doesn't blame them either.)
Cawthorn isn't a town yet, isn't quite a village, is a place made by outcasts, by the desesperate and those who want to learn, but, as much as his father would hate it, Theo thinks it's a good place to live in.