Droaam is a nation in the Eberron setting for Dungeons & Dragons. A relatively new addition, it was born out of the chaos of the Last War, and is distinctive in that it is a nation built by and for monstrous humanoids - gnolls, medusae, ogres, trolls, minotaurs, lizardfolk, harpies and the like. Much like the short-lived Kingdom of Many-Arrows in Forgotten Realms, its main purpose is to show the traditional "monstrous peoples" that there is an alternative to the old ways of skulking in the wilderness and fighting demihumans. Unlike Many-Arrows, Droaam has actually been surprisingly successful; thanks to its close ties with several of the Dragonmarked Houses, the denizens of Droaam, particularly the surprisingly honorable gnolls, have become frequent sights in the older nations, and the demihuman nations are becoming increasingly accepting of their monstrous neighbors as years pass without full-scale war. In time, Droaam may be fully recognized as an equal amongst the other nations.
Basically, Droaam exists to emphasize Eberron's huge "fuck you" to the concept of Alignment and the tradition of the "Always Chaotic Evil Race".
That said, it is still a generally-pretty-evil place. It's run by three hag sisters, the Daughters of Sora Kell, who keep the peace between the various monstrous races through a mixture of personal magnetism, carefully cultivated relationships with the chieftains and warlords of each clan, magical might, fear of the eldest sister's prophetic powers, and good-old-fashioned brute force in the form of armies of loyal trolls and ogres. And while their own personal domains are places where even weak monsters like kobolds and goblins can lead good, safe lives, beyond that they mostly only care about major threats to the stability of their fledgeling little despotic-feudal nation, with lesser crimes being largely ignored. From there, it depends on which warlord is running your little pocket of Droaam. For instance, Sheshka the Queen of Stone, the head medusa, is a peaceable, reasonable person who isn't even of evil alignment, while Rhesh Turakbar the minotaur warlord is straight out of any-other campaign setting, regularly raiding the neighboring nation of Breland for plunder, slaves, and blood sacrifices to his dark master Baphomet (or at least the setting's local off-brand Baphomet-equivalent), and both are equally-tolerated by the Daughters for providing useful services to their nation.
Also, because it's a brand-new nation that hasn't been fully diplomatically recognized by most of the continent, it's not bound by many international laws, meaning it's a haven for all kinds of criminal activity, smuggling, and various neer-do-wells looking for somewhere without extradition treaties. The city of Greywall, with its dour illithid mayor and perpetual stormy gloom and urban sprawl, is a popular campaign destination for fantasy-noir shenanigans.
The Daughters of Sora Kell themselves rule from the capital city they've built in the Great Crag, and they are Sora Katya, a green hag and the face and strategist of the group, who is a consummate shapeshifter and normally assumes the form of a sexy lady, Sora Maenya, a sly, brutish annis hag and the group's muscle, and Sora Teraza, an old, blind half-fiend dust hag who is the greatest living oracle in Eberron, so much that her physical blindness barely affects her ability to perceive her surroundings thanks to her second sight. All but Tereza, who is lawful neutral and generally quite cryptic in her actions, are still evil, mind, but Katya relishes the challenge of ruling an entire nation, and Maenya the chance of battling with entire armies. They're also using a crime syndicate to make a play for control of Sharn, and have already taken over the lowest levels.
These happy gents appear in the Dungeons and Dragons Online MMORPG as an expeditionary/invasion force visiting the city of Stormreach. They do a lot of bad stuff, including a plan which has them calling in reinforcments from a large portal in some giant temple