After a bit of a haitus on progress with the city of Balmora, I thought it would help to make a new thread to organize progress for Balmora 2.0. This is a new approach to the city that will utilize the new Hlaalu tileset being developed. To start things off, here's the new skooma tunnels:

Inspired by the Balmora Underworld mod, the tunnels will be represent Balmora's darker side, where smugglers move Balmora Blue, moon sugar, and all kinds of other smuggled goods, from books banned by the temple to perhaps Ebony or Dwemeri artifacts. To find the skooma den, one needs to follow the blue lanterns (parts that branch from the path will have different color ones). In the tunnels, the player may also come across some of the oldest buildings in Balmora, carved into the rock in a Velothi style. This represents the Balmora described in the Last Year of the First Era book. Old Balmora would be sort of an equivalent to the Old Mournhold ruins in the Mournhold sewers.

Here's my newest take on what
Here's my newest take on what is now known as the Old Bazaar:
From here, there will be plenty of paths into the Skooma Tunnels, including the blue lantern-lit alley seen here. The area on the right by the Alchemy banner may end up being for a Balmora Blue merchant. Balmora Blue, based on the lore I can find on it, seems to be a type of wine which is commonly used as a front for the moon sugar trade. Balmora Blue is sometimes brewed with the moon sugar inside, creating a skooma-like substance out of the wine. Balmora Blue moonsugar leaves a blue tinted smoke when smoked with a skooma pipe, similar to how Redwater Skooma smoke seems to have a red tint to it.
Note that these are placeholder textures for presentation purposes, so that the screenshot isn't all purple. The final build will use the new assets that are on the way.