The Exiles Of Damaria — Ardath Mayhar

The Ancient Race of enhanced humans in Damaria has been all but destroyed by a revolt of the New People. The two survivors, Riddle the Poet and his nephew, young King Lute, flee to the City of the Mist. There they and the many other refugees plan to build a great ship to ferry them to safety in the Western Isles, where some of their kin remain. But the evil worm Dinorm, their old enemy, is not finished with them yet.
The longest and best-realized of all of Ardath Mayhar's epic fantasies, the first half of which was previously published as Riddles & Dreams.