Outside of Anvil there is a cottage wherein live a Dramora and his Goblin assistant. There you can buy several custom potions and an all-powerful (+2,000 Damage) melee-stave wielded as though it were a two-handed blunt weapon.
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During the Siege of Kvatch, the Dramora Ted deserted the army and fled westward. After some time he took refuge for the night in a cave, only to be assailed by it's occupants- Goblins. After slaying most of the tribe, only four remained.
Impressing the Goblins into his service, he traveled to the outskirts of Anvil where he had them cut stone, carve wood, and gather thatch for the assembly of a cottage. After it was constructed he ordered them away to see to themselves as they saw fit. One of the four, however, stayed out of want to learn his ways.
It was in that way that the Dramora Ted and his Goblin assistant came to live in the cottage outside of Anvil, to the left of the road if you take a right out of the city. It is there that Ted keeps a potion emporium.