Fable III is set 50 years after the events of Fable II on the continent of Albion where the Fable series is set. The old monarch, the hero of Fable II, has died and left the Kingdom of Albion to Logan, the player's eldest son. Some characters allude to how Logan has "Changed" in the last four years, and is excessively tyrannical now. After a traumatic event that Logan forces upon the player, they escape Logan's castle along with their mentor, Sir Walter Beck and their servant, Jasper. The player then starts to gather allies to aid in a revolution against Logan. The allies they gain include the "Dwellers," a nomadic community that lives in the mountains; Major Swift, a Royal Army officer in command of a remote fort; Page, the leader of the "Bowerstone Resistance"; and Kalin, the leader of Aurora, a desert land across the ocean. When attempting to gain the support of Kalin, the hero learns that a creature called the "Crawler," the forces of which have already devastated Aurora, intends to exterminate all life in the Kingdom of Albion. It is revealed that Logan's reason for treating his people so harshly is to raise money for an army to defend against the Crawler.
The player then leads a revolution and becomes the King/Queen, at which point the player is given the choice to keep the promises made to those who aided in the revolution at great expense to the treasury, or betray those promises in order to raise money for the defense of Albion. The player can also utilize the treasury money for personal purposes, or use personal money in the treasury. If the player chooses to be a "good" ruler, the treasury will be vastly drained and the only way the player can offset this is by transferring several million gold from their personal funds to the treasury. With 6,500,000 gold in the treasury at the time of the crawler attack, the player will be able to fully fund an army that can successfully defend the entire kingdom. With no money in the treasury and thus no army to defend Albion, the civilian casualties inflicted by the Crawler's attack amount to 6,500,000. If this happens, the world will be largely absent of civilians upon completion of the main quest. If the player passes lots of time by sleeping, civilians will start to return, but they will react hostilely to the monarch's presence, regardless of whether they previously acted as a benevolent or evil ruler.
[edit]Development

At the beginning of the Gamescon announcement of Fable III, Molyneux stated that the game was taking a different theme compared to the others as he believes the third game in a series to be hard to do correctly. "If all the rules have been established and all you offer is a new story and a handful of locations, people will start to lose interest."[5]
In an interview with OXM UK, he (Molyneux) spoke about how Fable was at risk of becoming a generic game where the player started off underpowered and weak but slowly got more powerful after they met the bad guy. After the player killed the bad guy, the credits would roll. Believing that is the formula that applies to many games, he asked why games "end at potentially the most exciting bit?" It was this that formed the basis of Fable III, where the player can overthrow the tyrant before becoming ruler themselves. He stated that it was when the player was ruler that the consequences of "who you are going to be, are you going to be good or evil, cruel or kind" stopped applying only to the player, but affected the entire country.[5]
Molyneux hinted that there may be drawbacks to leaving your castle too often to investigate crimes or fight wars, asking "Are you going to be a king that is the equivalent to Picard in Star Trek? Quite honestly, if the captain of the ship was going down to planets and getting involved in battles I'd be worried because I think he should stay in his chair. But if he chooses to go down and get involved, that's the freedom we give you as a king."[5]
Talking about the inspiration for Fable III, Molyneux said "if in Fable I the inspiration was folklore and in Fable II the inspiration was King Arthur and Robin Hood, then Fable III is definitely the rebels and monarchs – both modern-day and historic."[5]
“	What's so interesting about that is you look at it and you realise that "Gee, these people who ruled our land up until very recently were actually very creative with their power and abused it and used it in many evil ways." Take Henry VIII, let's just go through some of the things this guy did. Rather than say, "Hey, this marriage is not working out so well," he just decided to completely kill off his wives. Not only did he do that, but to do the deed he just got rid of religion and replaced it with a new one. He also took five percent of the entire tax income – the equivalent of billions of pounds in today's world – and spent it on his personal wine cellar, while many people within the country were suffering from starvation and plague. This guy definitely wasn't that nice a guy, and if you write that down he sounds really evil. Does history paint him as being really evil? Not really, it paints him as being a bit of a jolly chap who was quite infatuated with six women. That's fascinating inspiration and we really want to give you the power to be that colourful when you're ruler.	”
There are also new takes on traditional Fable concepts such as morphing, where the player's weapon change depending on what they do, and their alignment. If the Hero kills large numbers of skeletons his/her weapon will appear to be made of bones, whereas if they go around killing innocent people their weapon will begin to drip with blood. The weapon will also level throughout the game, making it sharper and more deadly. Another example is the "Extreme Emote" system. For example, if someone angers the Hero, they can show them their true nature, with either demonic or angelic wings sprouting out of their back.
Lionhead associate sound producer Georg Backer announced at the Develop conference in Brighton that Fable III would contain over 47 hours of recorded speech. This rises from 36 hours of recorded speech in Fable II. Backer said that the AI is the "biggest chunk of dialogue." Backer also said that the over 47 hours include "gossip lines" in which the "AI talk to you about what is happening in the game." The "30 or 40" different types of AI characters each have "about 2,000 lines." Three writers wrote the 460,000 recorded words in the game and it took more than 80 actors to voice them.[9] Many lines are ones that previously appeared in Fable II, so how many hours of vocal track are original recordings is unknown.