A wharfside tavern and inn of ill repute, founded by the legendary Urzan freebooter Margaret "Peg" Rosgo with her final haul. Her nickname, Peg, had a double meaning as it is the diminutive of Margaret and she had one wooden leg—she lost her left leg in the service of House Croydan during the Ascension Wars. The tavern sign bears her image: a striking Urzan woman with wild red hair and bearing an obsidian blade between her filed teeth.

After the wars Peg retired to Larkos and within a decade ran all illegal business in the fishmonger district. Among her underlings was the street-smart orphan Alva Cromwell.

The Rusty Peg is currently owned and operated by her great-grandchildren and is considered by most common folk to be a hive of scum and villainy.