I think after Sarah's attack, the ruins of old Payon were buried by years and years of dirt deposits and weathering. Denizens of Rune-Midgarts set about building a new town in its place and called it (new) Payon. By this time, not many remember the old village that now lay beneath Payon.
It is unknown if the new bridges that link Payon to the mainland contain turrets like those of old Payon's.
Just like old Payon before it, new Payon is also ruled by a powerful family. It is unknown if the current lord of the town has an heir.
On the outskirts of Payon lay a small hill in which a cave was dug, possibly to search for minerals and other earthy resources. As the people of Payon dug ever deeper into the caves, they eventually discover partial ruins of the former Payon and set about exploring them. But before they could get very far, Horongs appeared, representing the spirit of the people who perished in old Payon. Before long, Cat O' Nine-Tails and Moonlight Flower took up residence in the lower levels of the cave, raising the dead with their magical bells. No citizen of Payon dared to enter the cave ever again.