The Keldagrim Watchtower is a small defensive structure found in the south-western corner of Keldagrim, the capital of the Dwarven Realm. The watchtower is the only direct land passage from the Keldagrim south-west mines to the city of Keldagrim itself. The vast majority of traffic between the mines and the city moves via the River Kelda, which borders the tower's eastern side.
The Keldagrim Watchtower was presumably built to facilitate the Dwarven Black Guard's defenses of the city, although it is not regularly occupied. The south-west mines have historically been the route through which several hostile forces have entered the greater Keldagrim region, including the Arzinian Avatar in the early Third Age and many mountain trolls over the course of the Keldagrim - Troll Country War.
The only known major event to have occurred in the Watchtower is seen during the Forgiveness of a Chaos Dwarf quest. During the quest, a Black Guard patrol led by Colonel Grenda was attacked by a group of chaos dwarves in the mines while on a routine police mission. Six members of the Black Guard were killed before an adventurer and Commander Veldaban arrived. Working together, the two killed the last surviving chaos dwarf hand cannoneer, who was hiding on the top floor of the tower. The event ultimately caused the two to discover The Red Axe's base in a hidden part of the south-west mines, and the beginning of open hostilities between the Red Axe and Keldagrim.
The watchtower is three storeys tall. The ground floor features doors on the southern and northern sides, which allow players to travel directly from the mines to the city. However, only those that have started The Giant Dwarf quest are permitted to pass through the northern doorway. The first and second floors are largely empty, although the top floor offers an expansive view of Keldagrim Palace, the south-west mines, and King Alvis's statue on the River Kelda.
Prior to the release of Forgiveness of a Chaos Dwarf on 9 September, 2009, the watchtower's only doorway was on its southern side. This allowed players to enter it from the mines, but not from Keldagrim. As a result, the only way to travel from the mines to Keldagrim was via the Dwarven Boatman. The addition of a second doorway makes mining in both the south-west mines and Dondakan's mine faster, and also allows players to reach the Chaos Dwarf Battlefield more easily.