Men of Lake-town
The Men of Lake-town, also called the Lake-men or Esgaroth, are a hardy and pragmatic people who dwell in a bustling wooden town built on piles driven into the Long Lake, a vast body of water fed by the Forest River and the Running River. Their settlement is a busy centre of trade, where goods from the South and the Elvenking's realm are exchanged, and where the memory of the ancient kingdom of Dale and the dragon Smaug still lingers in song and legend. Though they live in the shadow of the Lonely Mountain, they have grown sceptical of old tales, and many of the younger generation openly doubt the dragon's existence. Their society is led by a Master, elected for his business acumen, and they are a practical folk, more concerned with tolls and cargoes than with prophecies of returning kings.
Role in the Quest
The Lake-men first appear when Thorin and his company, having escaped the Elvenking's halls in barrels, arrive at the edge of the Long Lake. The dwarves are discovered by the town's guards, and Thorin announces himself as the heir of the King under the Mountain. The news spreads like fire, and the townspeople, stirred by old songs of Thror's wealth, erupt in enthusiasm. They provide the dwarves with food, lodging, boats, and supplies, and even sing songs of the Mountain-king's return. The Master, though privately sceptical, bows to the popular clamour and gives Thorin a place of honour. For a fortnight, the dwarves are pampered and restored, and the Lake-men eagerly anticipate the treasure that will flow down the river once Smaug is defeated.
The Dragon's Wrath
The Lake-men's hopes are shattered when Smaug, enraged by the theft of a golden cup and by Bilbo's riddling talk, flies south to exact vengeance. The dragon attacks Lake-town with fire and fury, burning houses and causing panic. Despite the town's preparations—every vessel filled with water, every warrior armed—the dragon's assault is devastating. The bridge to the land is destroyed, and the townspeople are trapped on their island. Many are killed, and the town is reduced to ruins. The Master attempts to flee in his gilded boat, but the archer Bard, a descendant of Girion of Dale, rallies the defenders. With the help of an old thrush that reveals Smaug's weak spot, Bard shoots the dragon dead with a black arrow. Smaug's corpse crashes onto the town, completing its destruction.
Aftermath and the Siege
In the aftermath, the surviving Lake-men gather on the western shore, cold and hungry. They initially blame the Master for abandoning them, and praise Bard as a hero. The Master, however, deflects their anger by pointing to the dwarves as the true cause of their ruin. Bard, though acclaimed as a king by many, chooses to serve the Master for the time being and leads the effort to care for the wounded and organize the survivors. He sends messengers to the Elvenking for aid, and the elves arrive with supplies. Soon, Bard and the Elvenking march north to the Lonely Mountain to claim a share of the treasure as recompense for the destruction. They besiege the Mountain, and Bard parleys with Thorin, demanding a twelfth portion of the hoard for himself as the dragon-slayer and heir of Girion, and further compensation for the Lake-men. Thorin refuses, and the siege continues.
The Battle of Five Armies and Reconciliation
The standoff is broken by the sudden arrival of the goblins and Wargs, who attack all sides. In the Battle of Five Armies, the Lake-men fight alongside the elves and dwarves against the common foe. Bard commands the men on the Eastern spur, and though they suffer losses, they hold their ground. After the battle, with Thorin dead and Dain installed as the new King under the Mountain, a fourteenth share of the treasure is given to Bard. He uses this wealth to reward his followers, send gold to the Master for the rebuilding of Lake-town, and restore the emeralds of Girion to the Elvenking. The town is refounded on a new site, more prosperous than ever, and the Running River carries trade and friendship between elves, dwarves, and men. The old Master, however, succumbs to dragon-sickness, takes much of the gold, and dies in the Waste. A new, wiser Master is elected, and the Lake-men enjoy a lasting peace.