In Heroes of Might and Magic III, the alignment is a characteristic of a town type. The alignment of a faction tells about it's motives and philosophy, and the paths it chooses to reach it's goals. There are three alignments in Heroes III:
- Good (Castle, Rampart, Tower)
- Evil (Inferno, Necropolis, Dungeon, Heavenly Forge)
- Neutral (Stronghold, Fortress, Conflux, all neutral creatures)
The alignment has almost no direct impact on the gameplay, and it is mostly used in the storyline for obvious reasons. The only things in the game which are affected by alignment are the Altars of Sacrifice, the Angelic Alliance and a few of the Magical Terrains.
Although Stronghold, Fortress, and Conflux are neutral overall, Stronghold leans more towards evil based on storyline and their brutal conquest tendencies, while Fortress and especially Conflux leans more towards good. Fortress as they simply want to defend and expand their land for economic reasons, and Conflux helped stop Lucifer from using Armageddon's Blade.
Heroes have the same alignment as the towns with which they are associated, not the towns in which they are hired. The Castle heroes, Knights and Clerics, will still be Good when hired in a Dungeon town, for instance.