Though many believe that Earth is populated simply by animals and humans, there is much more variety than simply the differences between the different cultures, different countries, and there are far more species than are tracked in science books. All of the stories, myths and legends that are taught and told to Outsider children are real.
When Outsider children are born and as they begin to grow, their parents tell them stories of magic, fairy tales, Santa Clause and the Easter bunny. They tell the stories to comfort and calm the children, to inspire them towards greatness and to preserve their innocence. Because of this, the Sight that everyone is born with is preserved, for a short time. Children are able to see fairies and ghosts and impossible things. This is also the reason that they will always tell the truth -- because they were always being told the truth, and because they understood that honesty was what helped preserve the magic in the world, even if they didn't quite understand that the magic was something that needed to be preserved.
But as the children grow older, the grown ups start believing that they are too old for such nonsense. That it's time for them to "grow up." They tell them Santa Clause and the Easter bunny aren't real, that magic doesn't exist, that it's time to put away childish things, take their heads out of the clouds, and focus on the real world. Even if they don't believe these lies at first, eventually they are told often enough and by enough grown ups, and sometimes by enough kids who have already stopped believing, that they start believing the lies, and stop believing in magic. Their Sight fades, and they eventually become adults.
Behind the backs of the adults, however, seen only by the children and those select few who could never quite be convinced that magic wasn't real, is an entire secret world filled with and ruled by magic. There are many secret places for those with magic in their blood to hide and live, often right in plain sight of Outsiders.
Greece, Italy, England and America especially are heavily populated with hidden Awake, though only America has any established Sanctuaries -- Timberwind in central America and Stars Island off the New England coast. London, England is not considered an established Sanctuary but has been known to be a very safe place for those with magic in their blood, occupied and watched over by Alice Row. Throughout Earth are also many Hole in the Wall taverns, bars and pubs, Looking Glass train stations, schools, as well as hidden doorways to the Labyrinth.