The Floating Island is not actually a Floating Island. When the first Dwarven Ships approached the isle, they saw that it was as barren as the rest of the wastelands, with only a few low grasses and no animal life. But when they set foot on the beach, they found that the draining effect found elsewhere in the world was not present here. It became a Dwarven port for the Sea Clans, though the lack of fresh water made it unfeasable for anything more than a place to store goods or to harbor during the winter seasons.
As Feroz watched the nomads build the Abbey at Onella, he also noticed the same escalation in population and activity in the Koskun Mountains. Feroz realized that there must be a balancing agent in this world, a referee of sorts to ensure that total destruction is not realized. Feroz knew that whomever controlled the Sea would end up controlling the Homelands, and it would be matter of a few decades before one side or the other took control. Though the Sea Clans sailed the seas, they were few in number, and weren't interested in playing watchguard.
Feroz went to the Floating Island, and with the aid of his magics he built a great school there, and created wells of fresh water. When the Sea Dwarves returned that winter, they were astonished to find a huge, castle-like structure built on their island. They were even more astonished when a black-clad stranger approached them and said he would teach them how to wield magic in exchange for services.
The island was called the Floating Isle because of the lack of shallows around the place. Ships could be brought within a few lengths of the "shore", and anchored safely, even when the Winter Storms brought the huge waves that pounded the cliffs of the Floating Island.
Within a few years, the Wizards' School was thriving, and had more that twenty Apprentices serving under the mysterious First Master. Though Feroz did not teach them anything of the worlds beyond their own, or anything of summoning or binding, he taught them enough so they could learn and discover for themselves. Even to this day, the libraries of the Wizards' School are filled with preserved journals which detail the spell research and history of all those who had worked in the sanctums and laboratories of the School.
After a short time, the First Master vanished, leaving behind a number of his own magical texts detailing white and blue magic, and the construction of certain clockwork artifacts. There was chaos for a short time, but in the end a Council of Wizards was created, led by a Wizard Savant. Their role was to ensure that the seas stayed open and clear for trading and shipping, and to control and maintain their own neutrality, and the peace between the other rising nations.
As time went on, the Wizard's Council grew more self serving and more prone to trying to control the world around them. Maintaining the balance between the countries became their lifework, and maintaining fragile (and sometimes near-illusionary) alliances with Aysen and Sengir, the Wizard's Council became masters of manipulation and subterfuge, along with having some control over the wind and the waters of the Homelands.
In the modern day, they are in a precarious situation. The Serrans in Aysen think that they are all evil and should be put in irons, and the general populous still holds a deep grudge against the Wizards for once miring the harbor at Onella with kelp, keeping the forces of Aysen from invading the Dark Barony once and for all. Baron Sengir has become more reclusive, but the Wizard's Council is well aware that his agents are at work in their midst, and that a number of their students are being corrupted to the darker magics. Lord Eron of Koskun doesn't like them much, for one of their unwiser members took up a contract to try to assassinate the Goblin King and failed. None of their members have been able to walk the Lady's Path or anywhere near the Wood for decades. But their ability to teach, and their neutral position on trading with any ship who navigates the Reef keeps them alive and comfortable, however precarious.
The Wizard's Council is an advisory board made of the eight most powerful mages on the Island, usually the teachers and residing masters. The ninth member of the council is the Wizard Savant, who maintains absolute final say on any matter, though they are obligated to listen to any argument from the Council. To become the Wizard Savant means challenging the existing Master to a duel of some form or nature - the strongest wins, the loser is either exiled from the Island or asked to take a seat on the Wizard's Council as a valued advisor.
The rest of the island around the school is a thriving port town by the name of Port, one with a highly organized underground black market and barter system beneath the hustle and bustle of the hundreds of families that live on the hills around the School. Though the Council oversees all of the bureaucratic functions of the town, the subculture living there pretty much does as they please, unless they are clumsy and make waves, in which case the Wizards Council and their apprentices will remove the offenders by whatever means necessary. The town could not exist with the school and vice versa.
If you want something, you can likely find it here. Ships frequent the coasts of Aysen and the Pioneer towns, but rarely go to the Barony due to the number of terrible things that has befallen visiting crews in the years beforehand. Transportation is a simple matter, and the Sea Clans weather the winter storms on the Floating Island. A lot of goods and barter happens here, and you could consider the entire city around the School to be one huge marketplace.