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Video games are considered canon unless they contradict content in some other Forgotten Realms publication.
The inhabitants of Highcliff were traders, while some of them practiced magic, enchanting items and selling them to wanderers. Also, since it was the only port in the region, much trade came from merchant boats. Before the Second War of the Shadow, many travelers sailed the boats, since the roads were much more dangerous than the sea was.
Neverwinter Nights 2Edit
When the Kalach-Cha came to Highcliff, lizardfolk attacked the boats. Mayne, the mayor of the town, asked the Kalach-Cha to investigate the matter. At Highcliff Castle, the Kalach-Cha found Slaan and his soldiers fighting some zombies, who were raised by a shadow priest under the command of a figure named Garius. Slaan thanked the Kalach-Cha and led them to the cave where the lizardfolk chieftain was. The Kalach-Cha could made a deal with the chief or slay the tribe. At any rate, Mayne would be pleased, since the lizardfolk wouldn't attack the boats anymore.
When the crisis of the shadow reavers and the King of Shadows began, the Kalach-Cha could go to the village to find the lizardfolk besieging it. If the Kalach-Cha made a deal with the lizards, he could potentially defeat the lizardfolk shaman (who had caused the havoc) and persuade the lizardfolk to join at the Crossroad Keep to fight the King of Shadows.
Storm of ZehirEdit
Highcliff was later rebuilt, and adventurers made a trading post there.