Westmarch is one of the Western Kingdoms, with Entsteig and Khanduras. The name may also refer to the Kingdom's capital, although the map included with the Diablo II manual seemed to indicate that Duncraig was the capital of Westmarch.
Westmarch will most likely appear in Diablo 3, as it and several new city sites within the Kingdom are on the Diablo III teaser site's world map.
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