Mermaid's Palace is a small island off the coast of the Arbor. It received its name from the small natural grotto situated in the rocky base of the island. Years ago, the island was a prominent location for pilgrimages done by followers of the Faith of the Seven; however, due to raids the sept and septry were abandoned. More recently, a group of septons has moved onto the island in the hope of once again restoring the island to religious prominence.
- Sept, This sept used to be a marvel to look upon, but time and occasional raids caused it to fall into ruin. In recent years, septons have brought it back into use.
- Septry, The septry, like the sept, fell out of use and into ruin. In recent years, septons moved back into the septry.
This build was applied for along with Stonecrab Cay, Isle of Pigs, Bastard's Cradle, and Horseshoe Rock as a part of the Islands between the Arbor and the Reach application. Since the original island was much too small and flat, lemonbear opted to recreate the island completely by hand. She first created a wool outline in the test world and then filled in the empty space with a lot of help from BearicRoyce. The island was then pasted into the server's main world and terraformed by MrTXI. Afterwards, lemonbear built the sept and septry, as well as the pilgrim tents outside.
The island was completed for a while, but after the launcher was introduced lemonbear updated some of the sept's furnishing. Terrain set testing and new blocks soon prompted more updating.
Mermaid's Palace was inspired by the small rocky islands off the coast of Capri in southern Italy. The small grotto was inspired by the much larger Blue Grotto on Capri.