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Faerie is another name for the Undying Lands in the West - Valinor and maybe Tol Eressea as well.
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I think, Voronwe, that you limit Faerie too much. Faerie is wherever Elves are, I think. You have it in Rivendell, in Lorien, in Thranduil's realm, etc. This makes sense, because (as I've said elsewhere) Elves are modeled (not solely) upon the Tuatha de Danaan of Celtic myth, which are the original 'faerie' peoples.