This submission was inspired by a sidequest BlazeBigBang made. So partial credit goes to him.
Location: Hyrule Field
Description: The idea is that in a part of Hyrule field there is a Farmer working the fields and managing some cattle. He supplies Castle Town with his harvest. However he is alone and cannot manage to grow all the harvest and cattle that is needed for Castle Town. So all of it goes to the rich part of town. If he had more workers he could grow a larger harvest. He is willing to pay the workers, provide some food and a place to sleep. He will ask Link over the game a few things to do. The farmer would do it himself, but he is far too busy. The area starts out as a small farm, but it later ends up as a small village.
Step 1: After Link leaves Hyrule Castle Town when he sets out for the cogsThe first step is to create adequate lodging house. Link has to ask carpenters in Castle Town to build the lodging house for the future workers. The carpenters accept the assignment and they set out to the farm to create the lodging house. No escort needed. The carpenters get there on their own power.
If Link visits before step 2 he will see the carpenters working.
Step 2: After completing the first dungeon in Kokiri Forest.Once the housing is solved, the farmer will ask Link to recruite
5 willing workers. He tells Link that he now has the housing and is willing to pay for their work. They however must be willing to work hard on the fields. Link goes to Castle Town poor side where he finds homeless beggars spread over the area. They are all wanting a decent paying job however the town has nothing to offer. The five people are gathering outside the nearest gate from the poor side to the farm. Here Link will escort them to the farm. They will follow Link and Link has to protect them from enemies in the field. When they arrive at the farm the Townspeople are introduced to the farmer and the farmer says he will take good care of them.
When Link returns before step 3 he will see that the field of crops has expanded and all the five workers are working under supervision of the farmer. The workers are also much better dressed. If Link returns to the poor side of castle town he sees that the families left behind are also happier, because the workers send them money to buy food and shelter.
Step 3: After completing the second dungeon in Lake Hylia.When Link meets up with the farmer again he tells him that the workers desire to bring over family and loved ones. He also mentions that he has quite grown fond of the managing role and doesn't mind becoming a mayor of a small village. Giving the workers their own farms to grow some crops on, manage cattle and such. The farmer has send many requests for new buildings, but all of them have gone unanswered but one. The only answer is that they would love to do the job but cannot due to the problem.
The farmer subtly asks Link to find out what the problem is and help them. Link returns to Castle Town where he asks the carpenters about the problem. After a bit of probing Link finds out that the favorite tool box of one of the carpenters was stolen. And because they are such buddies when one carpenter is down and depressed all of them are
(Yeah, who would have know men are so sentimental
). They just sit around and sulk all day. The carpenter last saw it when he had to take a short cut through the poor side of town, which he usually would never do. Link sets out to find out who stole the toolbox in the poor side of town.
It turns out that one of the gang members, <INSERT NAME>, had lifted the toolbox from the carpenter by 'accidentally' tripping him. The gang member sold the toolbox to Ingo at the pawn shop. Link can either buy the toolbox back from Ingo for an amount of <X> ruppees, or steal it from the back room in the rich side of town. Each time it becomes more difficult to break into the pawnshops and steal stuff.
Once Link returns the toolbox, the carpenters are rejuvinated and really motivated to get back to work. They tell Link about this awesome job they had been offered by some farmer in Hyrule Field. They storm out of the building, leaving Link behind.
If Link returns before step 4 the workers are working the fields and hurding the cattle. All the while the carpenters are working on 5 houses at the time.
Step 4: After completing the third dungeon at Goron Mountain.The houses are now complete, hower the families are still not here. The farmer wanted to pick up the families in town with his carts, however they were raided by a group of Bokoblins and all carts were taken. They hide out in a cave with a large entrance somewhere in Hyrule Field. The farmer knows that Link is a warrior and asks him to bring back the carts.
Link sets out and when he enters the cave there are 3 carts with horses tied to the ground. They are surrounded by 3 bokoblins. Link will have to defeat the bokoblins, 2 more will appear. Once all 5 are destroyed 3 bokoblins come walking in from doors at the top of the room on a higher area. They will throw their bomb at the carts. Each cart can take 2 bomb hits before destruction and 2 of the 3 carts have to survive. If not Link will automatically die and go gameover (don't ask how this happens, it just does

). Link wil have to pick up the bombs and throw them at a safe spot or throw it at a damaged wall to the sid. This wall takes three bomb hits before breaking. Once broken it will reveal a bomb flower. Ignite the bomb flower and a chain of explosions is set off destroying the back room. Any bokoblin outside of the room when the explosion occurs will jump down and attack Link head on.
Once all bokoblins are gone, the farmer will enter with one or two of his workers and they release the horses. The farmer tells Link that it will take some time to repair the carts and calm down the horses. He asks Link to go ahead to Castle Town to pick up the families and that he will meet Link at the entrance to Castle Town. Link accepts and he goes to collect the families of the workers in Castle Town. They go to the entrance where the farmer is waiting, although for one of the wifes you need to find her child first who is hiding somewhere in Castle Town. When all are collected and in the cart the farmer thanks Link and goes back to the farm.
When Link returns before step 5. The farmer is now a mayor. The families are cleanly dressed. The fields have grown and there are more cattle. The workers and their families are now working hard on the farms. And one of the wifes is teaching the children in the field. The lodging house is now empty.
Step 5: After completing fourth dungeon.The farmer tells Link that there have been some travelers from Castle Town that just wanted to escape to the simple live for a while, but he had no decent place to put them. So he had already asked the carpenters to remodel the old lodging house into a inn. However the farmer doesn't know anyone who is willing to run the inn. He is thinking about asking one of the wifes of the workers. The farmer's father (and retired farmer), who resides in the farmers house, keeps muttering about that he would want to meet the "beautiful young woman" that his son has fallen in love with, but she cannot come because she is a part of the very rich in Hyrule.
In one part of Castle Town there is a very big mansion. Link can enter the room of the daugther of the owner of the mansion. At this point when Link talks to her she will tell Link that she wants to go to her boyfriend who lives in a small village in Hyrule Field. However her father has arranged for her to get married to some stuck up prince from a far away land, but she doesn't want to. She wishes that someone would help her. Link asks if he is a farmer. He then tells her that he knows him and has often gone to the village. At that moment her father enters her room. Startled by Link's presence he calls the guards to throw the riff raff out of his house.
As Link is kicked to the curb, he has to once more sneak into the girls room in the Mansion. She then notices that Link is serious about helping her. She tells Link to wait for her at the edge of town. She has to pack and, unlike Link, can move freely through Castle Town. However beyond the Town walls she would be lost. As Link arrives at the edge of town he hears someone calling for him. As he looks around the girl approaches him. She then asks Link to guide her to the farmer's village.
Link has to walk with the girl to the village, protecting her from all the enemies. As they near the edge of the village, they see the farmer coming towards them from the other direction. As the farmer and the girl see each other they run up towards each other in an embrace. At that moment the father also comes in with a couple of guards. He becomes enraged by seeing his little girl in the arms of a commoner. He accuses Link and the farmer of kidnapping, but as the girl tries to tell that it isn't true, the father calls for his pet monster that someone had given to him. The farmer wanting to protect the girl first charges towards the monster, but gets brushed aside instantly. [Link has to fight the monster in a (mini)boss battle.]
As Link defeats the monster, the father is astonished and comes to his senses. The father asks if this is really what the girl wants and makes her happy. He then tells that he always wanted to see her happy and that is why he arranged a marriage for her into a life of luxury, where she could get anything her heart desires. However he never imagined that this is what makes her happy. He wishes her and his new son in law good luck and he then goes with his guards back to Castle Town. The farmer and the girl thank Link for his help and go back to the village as well.
When Link returns to the village he will see a nice farming village with hard working people. The girl is now running inn as she wants to give others also a chance to sample the village life. She already has some guests, who are enjoying the quiet village. The farms have now enough production capacity to supply the entire Castle Town with food. And some farmers occasionally go to the poor side to hand out some food. However the village has no name yet. The farmer says that Link has to decide on a name. And this is where the player is allowed to put his own name in front of the word 'village'.