I'll do an update when I have the time to work out the details and make a map (darn exams), but what I had in mind is that the islander are, in all esences, nomads who move around the island with their dragons and live where they please, but have established a single village that they always return to on the Eastern side of the island. Sheep live wild all over the island meaning they need hunted when the dragons (and by extension, their riders) are hungry.
The village is on the Eastern side of the island and has a forge, several shops with merchandise that has either been stolen from neighbouring vikings or traded for, a larger building for meetings and such as well as many other houses. The hatching grounds are located in the middle of the village.