Men of lake town, the place where Bilbo and his companions of dwarves arrived to after escaping the elven jails by hiding in barrels that had wine and food in before.
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Lake Town was the name of the village that existed at the time of the Hobbit. It was destroyed by Smaug when he was awakened by Bilbo. The down that lay at the foot of the mountain that was destroyed previously was called Dale.
The Dwarves, Bilbo, and Gandalf were trapped in the goblin town. Read the book!
Bard told Thorin that Thorin must give Bard a portion of the treasure to rebuild Esgaroth, or he would be considered the foe of the lake-town.
They had no desire to spend the night that close to the mountain. While they had never seen the dragon, they knew of him and wanted to be as far away as possible.
It is on built entirely on stilts out over the lake, sort of like a Middle-earth Venice.