Location: northeast of the Roxy Inn (link goes to the Daedric Shrines Map at UESP Wiki)
Minimum Level: 15
Reward: Ebony Blade
Objective: Create a little (or a lot) of discord between the Nords and Dark Elves who are peacefully living together at Bleaker's Way. Nords and Dunmer living side by side? It just ain't natural. So you're going to spice things up a bit by killing Hrol Ulfgar (the Nord leader) and Nivan Dalvilu (the Dark Elf leader). But it's not enough to just kill them, you have to plant evidence that implicates the other leader in the killing and that evidence must be placed in their inventories.
The evidence that you'll need:
Both leaders are home between about 10 p.m. and 6 a.m. If you're a truly stealthy type, you can sneak in while they're sleeping and get in that massive sneak attack while they're sleeping. Otherwise, you'll have to slug it out. This isn't such a big deal with Nivan (who is about your level), but Hrol has several levels on you and some decent combat skills to back it up. Once the deed is done and the "evidence" planted, you'll need to let someone know that the two leaders got into a fight (it doesn't matter who you tell). Then you can stand back and watch the fun.
The two sides will go at each other with a surprising amount of gusto. Unless you're willing to level the playing field a little bit by playing field medic for the injured Nords, the Dark Elves will probably win the encounter.
Please take note that if you've messed around in Bleaker's Way on your own, you might have broken this quest before you ever start it.
Once you report back to the shrine, you'll receive the Ebony Blade as your reward (Silence and Absorb Health). It's not a great weapon in and of itself, but it's a must-have for artifact collectors.