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You have arrived at the Nameless Isle, where the powers of Divinity were said to be kept, within the Council of Seven. The first thing you are seeing is purged corpses, search them and loot a purging wand and a diary. Examine further bodies and you will learn that the Magisters and Black Ring forces are fighting each other over the powers of Divinity.

Elven Temple

Go straight east and you will find Delorus if he didn't die in Fort Joy. He will tell you that Bishop Alexander is rallying his forces at the Elven Temple and that he wants to get escorted to said temple. Don't escort him yet since he is level 8 and will die in any fight... clear the path to the elven temple first before you escort him there  (A Familiar Face). He will reward you with a pretty good bow.

Go further east and you will encounter Magisters and Black Rings fighting each other. If you choose to help the Magisters then they will tell you about Bishop Alexanders camp inside the elven temple as well.

Find the elven temple northeast where you have to purge the Shriekers with the purging wand that you should have looted from some purged corpses on your way there. You will find Gareth and Alexander fighting each other on the top of the Elven temple (Seeking Revenge). There are many possible outcomes depending on your decision and party composition.

  • You can side with Gareth and kill Bishop Alexander and his henchmen.
  • You can side with Bishop Alexander and just kill Gareth.
  • Persuade Gareth and calm him down by telling him that Bishop Alexander is not his father.
  • If you have Ifan in your group then he will kill Bishop Alexander as part of his personal quest.

If Bishop Alexander died then talk to his spirit and persuade him to get more information on how to enter the academy. Loot his head because it will come handy. If he survives, you will get the An Unlikely Patron quest. There are also some side-quests and companion quests in this area, click the links for more details:

The Black Ring forces can be killed if you don't want to side with them. They will drop a black mirror that will give a hint about where to go next.

The Sallow Man

The Sallow Man can be found inside a cave that is guarded by a troll east to the Temple of Rahlic waypoint. Persuade or kill the troll to enter the cave and you will find an altar. There are two possible ways on how you can enter:

  • Put Alexanders head on the altar.
  • Use the Cowl of the True Sight given by Alexandar on the fake wall right behind the altar (An Unlikely Patron)

Progress through the cave until you meet the sallow man. There are again many possible outcomes of this encounter.

  • You can join him and his Black Rings.
  • You can kill him and loot his whole place.
  • You can double cross him and get some decent staff.
  • He recognizes Lohse's demon and will attack you when you approach him with her. 

You can find Windego inside the cave as well as the Shaft of the Swornbreaker.

Gaining Acess To The Academy

You can enter the Academy either by solving the puzzle near the Lunar Gate waypoint on the most eastern part of the island.

There is also a secret back entrance if you jump across the platforms on the lava region south-east of the map.
 

The Lunar Gate puzzle

The pillar to each god outside the entrance to the Council Academy must be aligned to either the sun or the moon. You have to find the 7 altars representing of the gods representing a race to learn heir alignments. Most people consider this task as tedious since most temples are just full of traps or have riddles. You can skip that part but you should be at least level 17 before you enter the academy.

The solution to The Lunar Puzzle

  • Humans are aligned with the Sun
  • Elves are aligned with the Moon
  • Dwarfs are aligned with the Moon
  • Orcs are aligned with the Sun
  • Imps are aligned with the Moon
  • Wizards are aligned with the Moon
  • Lizards are aligned with the Sun

If you have helped Alexander, he will tell you the solution as well (An Unlikely Patron).
You can also just destroy all 7 pillars.

When you have aligned the gods correctly, put the enternal conductor on top of the power symbol (you can also just use a lightning skill/arrorw) and pull the lever right in front of the main entrance.

to be continued...