It is on built entirely on stilts out over the lake, sort of like a Middle-earth Venice.
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The River "Running" ~ look to the link below to a map .
The Hobbit contains many human characters, including the men of Laketown, most notably Bard the Bowman. Gandalf appears in human form, but he is not a human.
That would be Bilbo at his birthday feast in Laketown. He had caught a cold in the river riding the barrels.
The elves in "The Hobbit" did not know how the dwarves could have travelled there. They thought the barrels were all empty.
That would be the men of Laketown and the Army of the Elven King. They have taken over the area to prevent the dwarves from getting out to get food. It also prevents Dain's men from joining the group under the mountain.