Grimhold started as a Half-Orc stronghold, a place where the often misjudged individuals could congregate without fear of reprisals from either Orcs for not being Orc enough or other species who felt that their monstrous visage meant similar monstrous intent.
Over the years more malcontents and misfits of all the intelligent species have made their way to Grimhold and have woven the once dark and foreboding keep into a vibrant and bright city of riotous colours, sights, and sounds. It may sound like anarchy and in some ways it is but there is an order that shapes the city.
The city is ruled by a council of the species that inhabit it. There are few hard and fast rules as they believe staunchly in individual choice but the few rules that are extant are enforced rigorously.
The laws around public endangerment are very well defined and breaking them carries stiff penalties. For instance there is a building code and a code of conduct that the folk in the city adhere to.