Alduin awoke due to the influx of magicka during the oblivion crisis, meaning the empire now has to deal with both flying gods of destruction, and the oblivion gates popping up everywhere. Fortunately, or unfortunately, they have you.
Cheydinhal is the city closest to the Morrowind border near the Velothi Mountains. Being so close to Morrowind has made Cheydinhal heavily Dunmer influenced and populated. To the north is Lake Arrius and to the south and southeast is the Reed River and Lake Poppad. Cheydinhal is built next to a lake at the feet of the mountains. The city is ruled by Count Andel Indarys. A house is available in this town for 15,000 gold. Cheydinhal is accessible from the Imperial City via the Red Road going east to the Blue Road.