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The starting area of the game, it contains a bar, a weapons & armor shop, a general store, and a bank.
The first order of business is talking to the man with the full hourglass, this hourglass indicates a quest is available. Also important is a looking glass icon above the heads of an NPC, this gives you information on where to possibly find another quest, usually pointing you in the direction of a person.
Follow the string of quests given to you, it should take you to a mine in the upper-right corner of Bluevale, this is where your first dungeon is located, and a good place to grind for some early levels (enemies include: Rats, Bats, and some Lesser or Green Slimes).