It's a bit of a story, I'm afraid. This place is known as Vatheon. It pulls people from different worlds and times to live here. The reason it does so is currently unknown, though there are a few theories. Most people believe that the large coral behind you is what is responsible for drawing people here.

[She gestures to the Lamufao.]

You will need to touch the coral at least once a month or you will fall into a coma-like state. It may also be draining the powers of some people, though I personally have not noticed that much of a difference. If you have any teleportation powers, you will find those to be extremely limited. The city does not wish for us to leave. Thankfully, time will not pass back on our homeworlds while we are here, and the city provides for us to live fairly comfortably.

[Zelda undoes the very top of her dress and gestures down to the mark of Vatheon beneath her collarbone.]

Simply show this mark to any of the natives and they will provide you with most anything for free. It should be present somewhere on your body now.