Malazan Empire: Excerpt speculation - Malazan Empire

Does anyone know where the excerpt takes place? It doesn't make sense that this would be Northern Genebackis because how could all these clans be so isolated that they have never seen this Silver Lake which apparently is just over the mountains. Assail perhaps? Maybe these clans are the people killing the T'lan Imass with the aid of their Seven Gods. I don't really see the connection between the Seven Gods and the seven hounds, though. I think these two are totally unrelated, except for having the number seven.