The area was filled with human enemies that kept coming in groups at me. They managed to poison me in one occasion and I had to rest for a while to use a cure poison spell. The first block had a submerged area with 2 lamias, and I discovered by pure chance that a torch activated a mechanism that opened a wall and unlocked the upper room of the block. On the 2nd block there was a bigger submerged area infested with dreughs and slaughterfish, as well as a pretty complex system of levers, wheels, elevators and openable walls that took me a while to fully comprehend
I'll check a few more dungeons near Newcester before continuing my "pilgrimage" towards Daggerfall City. Here's the map of the dungeon after full clearance:
Spoiler!