Have you read the two fantasy novels of your sister DAW author Tanya Huff that have been published so far in her Magical Emporium series?

They definitely employ the classic "Fantasy" elements of Europe, particularly the British Isles -- witches, dragons, selkies, plus the folk music(s) -- they are set in Canada, and the characters are Canadian. They work very well, and are really fine reading experiences.

Love, C.