Locations on Reverie have three categories: Fixed, Cardinal, and Mutable.
Fixed locations are exactly as they sound: They are permanent features of the landscape and do not change their location on the island and recognizable landmarks like buildings, roads, and so on stay in the same place. While they may expand with the island, they will not disappear or move. These are usually shared concepts that all dreamers have and might expect to find, such as a city. Fixed places are as close to the 'real' world as most residents can expect of a dream-based island.
Cardinal locations are the next step down from a fixed location, these are integral parts of the island but are not as consistent as a fixed area. They often change themselves to subtly reflect a dreamer's influence, and sometimes act as if they have a mind of their own, but remain pretty solid.
Mutable areas are the most unstable parts of the island, and are usually around the coast. These areas will undergo temporary, if drastic changes to suit the needs and thoughts of a character. You may walk into a section of the island that looks like your home neighborhood, for example. Group influence may transform a mutable area into something more permanent later on.
Paint Beach - Fixed
Paint Beach definitely lives up to its name; the sand, sky, and ocean all look like paint here. A port town is visible in the distance, and up past the sea grass and dunes is a dense jungle. Much of Reverie looks like a painting, but here it is the most obvious. For reasons unknown, Paint Beach is highly unstable for being a fixed area, and thus all new arrivals wash up from the Ocean of Somnia here.
The Shifting Coast - Mutable
The coast surrounding Reverie is the most mutable part of the island. Given that Paint Beach is the most unstable constant, it makes sense that the other edges of the island have frayed points of reality that can change into something else entirely, at any given notice. A chunk of the island may become a futuristic outpost on one day, and then turn back into a sandy beach the next.
Glaucio - Fixed
The port town of Glaucio sits on the eastern tip of the island. Vaguely European in style, many of its coquina buildings are painted white and shades of light blue with navy blue tiled roofs. Think something like Termina from Chrono Cross; in the day it's usually bright and sunny and overlooks the colorful, painted sea. The size of the city naturally expands with its population, and it has a variety of comfy residential areas ranging from luxurious apartments to beach condos to houses laying out by the city walls, all outfitted with modern comforts like electricity, computers, and running water. There is also a wide variety of shops, restaurants, and hotels, changing by the day.
Sailboats sit in the harbor, although they are never seen going very far: looking out to sea with a telescope reveals a ring of barrier islands and jagged high rocks jutting up from the water. If one were to see the water beyond the rocks, they'd notice it's a far cry from the idyllic Paint Sea -- the water here is oily and black, the skies gray with angry clouds and storms. Rain pours down in sheets, and the waves are fierce enough to capsize the largest tanker. Generally, traveling past the protective land barrier is Not A Good Thing. But the shelf surrounding the island? The waters are blue, calm, and teeming with fish and other life and make for great swimming and fishing.
The preferred mode of transportation around Glaucio is predominantly scooters, small cars (think Mini Coopers), and bicycles as the roads are all cobblestone and a little on the narrow side. Any time of the day you can see cars parked along the street, as most homes don't have garages. Hanging off many posts and buildings are royal blue pennants and banners bearing a white seagull image, and all the signs for shops and the like are bright, hand-painted and carved wood. One of the most popular hangouts in Glaucio is a local tavern called the Laughing Gull.
Glaucio does not have a currency system, it operates on a bartering system. As of now it is unclear who runs the city, if anybody: it's mostly a dream construct, albeit a very solid one. Glaucio is home to many NPC residents, mostly sailors, fishermen, merchants, and the like, of all shapes, sizes, and colors.
The Jungle - Cardinal
Although the jungle will always be a part of Reverie, it is nowhere near constant enough to remain a fixed area. The jungle is very much alive and literally what you make of it: If you come here fearfully, its canopy will block out the sun and you'll start hearing things, perhaps see something that will chase you; if you come to the jungle expecting fun and adventure, it will start throwing things at you like a giant arboreal playground (swinging vines, snapping alligators, fast-paced excitement!). It reacts to your thoughts and feelings, and can almost be considered an entity of its own. Sometimes the jungle will play games on visitors and try to trick them or force them to solve puzzles in order to leave, navigate further into the jungle, or obtain a piece of fruit, etc.
Additional setting notes:
Although you can die on Reverie, it's temporary. Your character is forced awake, removing them from the dream (because honestly, who doesn't wake up after dying in a dream?), and the body disappears. Your character can return to Reverie intact (or carrying scars if the player chooses) after falling back to sleep, which can be anywhere from a few hours to a few weeks in game time. That's up to the player.
One of the strange things about Reverie is that its residents can and will be affected by how they're feeling. A stoned character may literally start floating or physically warping; if you feel lightheaded you better make sure your head isn't actually flying away from your body! If a character wants to pretend she's a dragon, she may actually turn into one temporarily. Transformations generally don't happen against the character's will, unless they are thrust into a nightmare.
For the most part, they are subtle reflections of the character's will. A tattooed character might have tattoos that constantly change, or a person that constantly dyes her hair may have hair color that changes depending on how she's feeling. Depending on how eccentric that person is, parts of them may stretch and squash as they're speaking. Physics on Reverie work not unlike cartoon physics, so be creative!
Although characters can influence their surroundings to a degree (such as dreaming up furniture for their apartment, changing the color of their walls, etc), they cannot nor never be able to influence another person against their will -- played characters, NPCs, etc. Only inanimate objects and the character him/herself can be influenced. A person can dream up a copy of another person but they have the consistency of a cloud and physical contact with the copy will cause it to poof and disappear. Additionally, the copy cannot speak or act independently (think like in a cartoon where a character thinks about someone he's got a crush on, goes to kiss her, and she vanishes in his arms as he goes to kiss the air or a fish or something. :V stuff like that).
Sometimes incredibly silly things happen on Reverie. The island may be turned upside-down, or you may suddenly find yourself able to walk on the ceiling for no apparent reason at all. You might wake up with a beak, wings on your butt, or a strange new talking head that's grown on your shoulder. These are called brainfarts, and they just happen for the hell of it. Brainfarts are temporary, they will last a day at most and exist as floating bits of subconscious that latch onto a character for no reason other than the fact that they happen to be there. And it's just funny.
Occasionally, there may be a game-wide brainfart that affects a large percentage of the island's population.
Sometimes, dream energy corrupts, or great storms manage to cross over the high rocky barrier surrounding Reverie. Nightmares happen, usually on an individual basis -- although there are occasions where a nightmare may affect the entire island and most people on it. They aren't supposed to happen very often and typically have a lasting psychological impact. They can be as surreal, cerebral, or physical as the player wants to be, but island-wide nightmares are currently reserved for plots, often coming in the form of storms that affect everyone on the island.
Storms are highly destructive. Like in the waking world, buildings can be leveled, streets become flooded, and they can come with no warning. Unlike the waking world, however, instead of bringing just rain and wind, they may bring in tentacled horrors or other monsters and terrifying hallucinations.