Analyzing Setting in Eldermere

Read the following excerpt from a fictional prose work:

In the shadow of the towering cliffs, the village of Eldermere lay shrouded in mist. The cobblestone streets winding through the town were slick from the morning rain, and the air was filled with the earthy scent of damp soil and pine. Frayed curtains fluttered in the windows of the quaint cottages, while the distant sound of the ocean crashing against the rocks provided a constant, rhythmic background. Eldermere seemed to exist in a world of its own, untouched by time, where whispers of old legends mingled with the light breeze.

As the sun began to peek through the clouds, the villagers started their day, their figures barely visible against the pervasive fog.