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Lancre is a fictional country from Terry Pratchett's Discworld novels. It is situated in the Ramtop mountains, about 100 miles Hubwards of the city of Ankh-Morpork. It is the best-known of hundreds of tiny countries in the Ramtops, occupying a vertiginous shelf looking over the Sto Plains.
Lancre is based mainly on the North of England (as in Lanc(ashi)re), but is reminiscent of many rural areas in Britain and elsewhere. Pratchett has described the tiny country as "solid folklore"; it is the place all the legends of our world's countryside really happened. Ankh-Morpork serves a similar function for urban folklore, but not as blatantly.
Part of the reason for this is that the Ramtops are a major earthing point for the Discworld's magical field. Headless horsemen and walking trees are part of the landscape, as are witches. Lancre is famous for witches, especially since the publication of The Joye of Snacks (an erotic cookbook) by "A Lancre Witch" (Nanny Ogg).
The other thing Lancre is famous for is young people going off and seeking their fortunes (usually in Ankh-Morpork).
The King of Lancre is Verence II. Most people, himself included, believe he is the son of Verence I. The capital "city" of Lancre is Lancre Town, by dint of being slightly bigger than the other villages, and containing Lancre Castle.
The Lancre coat of arms shows two bears on a black and gold shield.
More information is available in A Tourist's Guide to Lancre by Pratchett, Stephen Briggs and Paul Kidby.