I'm not certain.
I know that both the Magocracy and the Iron Kingdom (In Hazet's Lands) have both Dwarves and Draemar.
The Free Cities (Like Bluebell) are wholly cosmopolitan.
No one wants to live on the same island as a Sea Hag, so they're left alone.
And not many people can survive living under the sea...
There are the shapeshifters from the sea.
Four kinds of shape-shifting animal-people who shed their skin to become human (Selkies to the north, Serpent-People to the south, Swan-Maidens near lakes and rivers more than the sea, and Fish-People all around.)
I'm sure they'd have no problems with a little romance. Shapeshifters tend to be interested in that sort of thing.
“She'd become a governess. It was one of the few jobs a known lady could do. And she'd taken to it well. She'd sworn that if she did indeed ever find herself dancing on rooftops with chimney sweeps she'd beat herself to death with her own umbrella.”
― Hogfather