Iselia is a town in Tales of Symphonia and Tales of Symphonia: Dawn of the New World. This is where Lloyd, Genis, and Collete were born and grew up. This is the opening town in Tales of Symphonia. It doesn't play a big role in either game.
This is just an old farm village. It is usually peaceful, except for when the Desians raid. There aren't many villagers here, and there are only two half-elves here. The rest are all humans and/or dwarves. It is right near a Desian Human Ranch, where the Desians take people to be turned into Exspheres. Iselia has a peace treaty with them though, and they cannot invade if the villagers do not invade. Unfortunately, Lloyd and Genis interfere with the Desians, causing them to burn Iselia. As a result, Lloyd and Genis are exiled.
Later in the game, Lloyd and company invade the Ranch and rescue Chocolat while defeating Forcystus, the ranch master. This ends the treaty of course, and the exile is withdrawn once the villagers stick up for Lloyd, Genis, Collete and Raine against the Mayor. He is always trying to stand in their way, due to two of them being half-elves.
There are very few changes from the two games. One that can be noticed quickly is the aura of the town. It's much darker than in the first game, where it was light through most of the game. Kids still play here, but they all talk about being Desians. Another thing is the school is a little bit different. There are pictures of Lloyd that kids like Paul drew. There are also new inhabitants, and most of them are a lot meaner than the people in the first game. Though, this is also due to it being in the Desert Region, which means they are affected by the Climate Change. Lloyd doesn't visit here in this game, except for maybe in the last chapter. Raine mentions this when you first talk to her about him.
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