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The foggy, quiet port of Selhoff is where the Nebelgast, the spirit-mist, is most active. The mist almost perpetually covers the town and the nearby Morkrut Swamp. Because of the spirit activity here, it has repelled some humans, but it has attracted others—namely the skaberen and alchemists who experiment with geist energy. The elite of Selhoff dwell within towers and spires that set this town apart from others of Nephalia, which is why the phrase "the spires of Selhoff" is often used when Nephalians talk of their southernmost town.

Here in Selhoff and all along the Nephalian coastline, spirits come and go with the tide, but that isn't to say that when the tide is out, spirits are absent—there are just far fewer. Because the tide is connected to the moon, the pull of the moon brings the spirits into the world of the living to haunt. The Nebelgast consists mainly of the marei (drowned sailors and shipwreck victims) and the niblis (frost phantoms), but there are a host of other ghosts and spirits that are pulled by the moon.

Selhoff lies on a small river delta where the river Ospid empties out into the Bay of Vustrow. This creates a sizeable marsh known as the Morkrut. Few set foot within the Morkrut other than ghoulcallers, and even they can become lost in its mists. The Morkrut has been a dumping place for murder victims and unclaimed bodies for which no one will pay for proper burial. Because of this, the Morkrut is filled with banshees and other malevolent geists.