The Hammer and Anvil is a tavern in the Lower Ward of Sigil. It is situated in a converted foundry two blocks from the Great Foundry itself. It sits on the corner of Smith Street and Grey Steam Lane.

This tavern started its life as a small dwarven forge. However, being so close to the Great Foundry, business slowly dried up as people went to the source (so to speak). Rather than give into depression and give up the business entirely, the clan turned to one of the other great loves of the dwarven peoples - brewing. They closed down the foundry, converted it to a tavern, and reopened for business. They do much better now than when they worked metal.

This building is a massive bulwark of dense stone and thick wood. It sits defiantly in the midst of warehouses and other metalworks. Its rusting iron smoke stacks still reach into the smoggy skies of the Lower Ward; now belching only the smoke of cooking fires. While its stone and wood have been stained black by the soot and are deeply etched from the acidic rains, the building is still intact and gives the indication of intending to stay that way for a long time to come.

Over the front doors, suspended by massive steel chains, are the forge's original anvil and one of its workman's hammers. The anvil is meticulous polished and keep free from most of the ravages of Sigil's weather. It hangs from one end, with the work surface facing the hammer. It measures three feet across, three feet high, and five feet long. The hammer is rightfully a small sledgehammer (four foot shaft, thirty pound head). It too is kept in the best possible shape. (These devices are arranged such that if there actually was wind in Sigil, the hammer would strike the anvil.) The front door is a set of normal size, wooden double doors (10'x10') set into the forges original door (a sliding stone wall, 14'x20'). There is also a sign (in Dwarven and Common) that states: "The use of weapons in a bar brawl, or the incitement of a riot, will cause the offenders to be Battleraged."

The interior is a long, drafty hall. It stands two and a half open stories tall, and runs half the length of the block. The smooth finished stone floor has been cleaned of soot, but still shows the mark of industry. The stone walls have also been cleaned, and are now painted with scenes of dwarves at work in the forge and foundry. All of the catwalks are still in place - the walks now available for people to drink and talk on. (As these walks are mostly five foot wide, they are too narrow to place tables on.) They are also used to hang the numerous (polished) brass lanterns that provide the light here. Many of the cooling racks and chains have also been left and are now used to transport food from the kitchen and then lower it to the customers at the tables.

Additionally, all of the vats and transfer buckets are still installed. The vats have been covered over and are now used for brewing good, strong dwarven spirits. The dwarves work on the process at all times, and the customers are invited to sample the brew before ordering. The buckets have been moved to the far end of the hall and lowered to the floor - where they have been modified and are being used as the kitchen and main bar. All of the remaining floor space between the vats has been set aside for tables. Near the back, two narrow spaces have been cleared for a traditional dwarven sport (bowling).

There is another two stories to this building, but they exist underground. The upper of the two has been set aside for storage; the lower is reserved as living quarters for the owners/staff and guest rooms for honored friends. There are a few sealed off, and thus, unused rooms. These rooms are rumored to contain secret passages that connect to the sewers and Dabus catacombs of Sigil.

The primary customers of this establishment are Godsmen, dwarves, gnomes, and other races whose interests lie towards either industry or hard liquor. Elves are not refused service, but they are not exactly welcomed either. Only Bleakers and Dustmen are always refused entry.

This tavern is run the dwarven clan Balthrovkildal, headed by Kilaim and his wife, Dorina. Their son, Dorar, and their daughter, Thorila, are in charge of the serving staff and kitchen (respectively). Since Kilaim views the tavern as his hold, he also has the following dwarves in residence: Gilur (Priest of Ulaa), Faro (Underpriest), Bofak (Chief Smith), Belain (Brewmaster), Balor (Clan Merchant), and Bolain (Warmaster).

The rumors about the lower warrens are true. There are several secret entrances into the Dabus catacombs of Sigil here.

Located in the doorway of one of the unused rooms on the lowest level is a portal to Chakan's homeworld - directly into the dwarven keep of his own home Citadel.