Fable TLC Edit
In TLC, Oakvale was an ideallic farming village, until the Raid on Oakvale which killed everybody except for the Hero. Later on in the game, however, a few people survived, including Teresa - the Heroes sister - and Rosie. When the Hero speaks to Rosie, he has a terrible flashback to the day the fire started and his whole worls came crashing down. Oakvale is found by the Hero after he escorts the traders there.
Fable II Edit
In Fable II, the location has changed radically. It is no longer called "Oakvale", but is rather now called "Wraithmarsh", a terrible area prone to banshees. If you look, a sign still reads the original town name.