This small is located a screen and a half away from a Training Tower that has Guard NPC's that are perfect for raising your combat skills. It is also right beside a mountain for those budding miners/blacksmiths! Not a bad location for chopping wood also. All in all it's a nice little house for raising all sorts of skills. Not much in the way of spawn and not too many neighbours to worry about.
The Chaos Shrine is located a short walk to the east, just follow the mountains and you'll see it.