A home for mermaid/elf/sprite like character.
There isn't much storage, infact you could almost call it non-existant, but I think adding too many containers would ruin the feeling. Unless I turned trees into storage units.
The new verison adds a mapmarker for the entrance, a new bow, more grass, and some creature friends so you don't get lonely.

If you're looking for a mermaid race:
http://oblivion.nexusmods.com/mods/19103/?
This is the race in the screenshot.

Location:
Move your map over to the Abecean Sea, fast travel to Anvil Lighthouse.
On your map you should see a river with a small island in it, the entrance is on that island.

Requirements:
Shivering Isles

Credits:
nateneurotic for his maple bow

Permissions:
The new verison includes the work of another modder who needs to be credited if their work is used. So if you intend to modify this with the maple bow you'll need to credit nateneurotic.
The maple bow is orginally from here: http://oblivion.nexusmods.com/mods/26478/?