Regenstein (previously Dialac) is a town on a tiny island located just south of Estard Island that exists only in the past. Regenstein is unique in the world of Dragon Quest VII, as the player's job is not to save the villagers from some evil, but instead to find out what happened to the town and save one boy.
The town of Regenstein was built upon a battlefield. A stone monument can be found in the centre of the village. There are a couple of underground passages that were found by a young boy, Felix. The town was a poor one that suffered horrible drought year after year, making it near impossible to grow crops. Every so often, a member of the village would have to buy provisions for the entire town. Once a year, the entire village would come together and pray for rain in an event known as the Regentanz.
Fifty years before the party arrived, one villager, Klemens, had volunteered to take up the journey to buy provisions for the village. Helga , his wife, warned him that the monsters have become more fierce. But he reminds her that he has to go and get the supplies because he's the only one who knows how to fight. He leaves to begin his journey, telling her that when he returns, they will announce to the villagers their marriage. With a final embrace, Klemens departs from Regenstein.
Meanwhile, Felix explores the town and finds another underground passage. He marks a landmark on an adjoining wall.
As the villagers prayed for rain, something happened. A muddy rain fell from the sky. All of the people caught in the rain were turned to stone. Unbeknownst to them, this rain is caused by the Rainiac.
Klemens, who was returning to the village at the same time, avoided the rain. Finding the townspeople turned to stone, he sets out to find a cure for the grey rain. He found such a cure called the angel's tears. However, the statues were severely eroded by the elements. As such, using the angel's tears would have no effect on the people. Understanding this, he stays in Regenstein, waiting for death to come to him as well.
The party arrives to see a bunch of human-like statues in the open fields. They are eroded to the point where they do not look like humans anymore. Klemens tells them that they are actually humans that have been turned to stone. He tells them to leave as there is no way to return them to normal.
The party spends the night at the inn. The Hero sees the statues glowing. Through their glowing, the villagers tell the story of the village up to the point where the grey rain fell. The Hero learns of Felix's secret passage and the next morning, the party sets out to find it. Under a withered tree, a staircase is found. Traversing the secret passage, the party find themselves on top of the stone monument. They use the angel's tears. With the effects spreading, a staircase is revealed.
A young boy, curious of the appearance of light, then climbs out of hiding underneath the ground. Though he was caught in the grey rain, he hid underground, which protected him against the elements. The party takes Felix to the old man. Klemens recognises Felix and is overjoyed to see one survivor of that day fifty years ago. The two decide to travel together to warn towns about the mysterious grey rain.
The town in the present is now nothing but a grassy field. The stone monument in the center of the city is still there. An old man, Sim (or a young woman named Carey), stands in front of the stone monument and asks the party to help make his (her) wish, that the grassy field can grow and become a city, come true.
This town will become The Haven.
For further information, see The Haven
- Klemens - was the town's resident warrior. He was the one who bought supplies for the town.
- Felix - a curious young boy who once had a girl as a playmate. Loves to explore, but was caught in the grey rain whilst hiding in a bunker, turning him to stone. Compared with other villagers, he was not eroded by the winds and was preserved, which made it possible for him to be revived. After being reunited with Klemens, travels with him to spread word of the stone rain.
- Lena - Friend of Felix and a victim of the rainstorm. Before the rain, she called out Felix for writing on the wall.
- Helga - Fiance of Klemens and a victim of the rainstorm. Before the rain, she voiced her concerns of Klemens leaving for supplies.
- Ralf - Father of Felix and a victim of the rainstorm. Before the rain, he finished his drink and walked around only to attempt to enter his house before turning to stone. After the Hero receives a vision of his actions, the statue of Ralf crumbles.
- Sim (PSX only) - Sim runs the Immigrant Town. His dream is to make it a bustling city.
- Carey (3DS only) - A girl who runs The Haven. Her dream is to create a safe place for reformed monsters.
The residents of Regenstein spoke a German variant dialect.
- There is a grammatical error that occurs in a cutscene after the party reunites Joseph with Clayman. It should read "Having reunited Joseph with the old man, the light shines in his eyes." It actually reads "aving reunited...."
- Although the town's priest has turned to stone, it is still possible for players to save their game in the village. The church has an Adventure Log lying on the table inside.
- In the localisation of the 3DS remake, Regenstein is now German-themed, with the inhabitants having German names, interspersing German in their speech, and speaking in German accents. The name Regenstein itself means "rain stone" in German.