Source: Legacy of Fire Player's Guide, pg(s). 3
The village of Yavipho is a tiny, predominantly gnome settlement in central Katapesh, very similar in nature to Tiven's Reed. It grew up around an oasis stopover for merchants and continues to serve as a place where one can sell almost anything to its curious inhabitants.
Constant harassment by slavers (especially from the gnoll population) eventually forced the gnomes to migrate beneath the oasis, where homes and workshops are dug from the rock. Most dwellings have secret escape routes, and the settlement itself is carefully monitored by guards for fear of discovery from hostile outsiders. Few visitors are accepted into the community, and those select few are searched before allowed entry. Paranoia is the price of security.
The vast majority of the populace in Yavipho are gnomes, although a smattering of other races may be found here also.