Dalai is a country thats mostly underwater, having three big citadels there. Lots of tritons, grung, locathath, tortles, sea elves, the like.
The capital is underwater, but aerated, and theres many dwarves and gnomes who call it home. Over time, its become quite the hub for artificery and magical artifacts. The Dalai leaders have started a war against Kingdom of Cozia to both test this technology out, and cause Maer, Deity of Change said so.
On the map I made, due to technical constraints, Dalai seems like islands, but it only has a handful of fishing settlements and villages under its banner, most of it concentrated to the underwater/underground citadels. For what it's worth, the islands in Dalai's domain tend to be british-isles and welsh-y climate and biomes, so why would anyone settle there.