The Lower Wards are in a state of absolute chaos. I am no historian, but my understanding is that several decades ago Upper Sanctuary attempted to assert control of what had until that point been a quasi-independent region. Ultimately, this resulted in the City Watch moving into this area with great resistance. After the murder of numerous Watchmen, the city contracted a group of mercenaries to keep the peace.
From records I've explored in the fortress maintained by these mercenaries, they slaughtered and killed anyone resisting them. They were viewed as a foreign occupation force by the citizens of the Lower Wards. Recently, these mercenaries were driven out by forceful revolution.
At this state, there is no law keeping force within Lower Sanctuary. It is my belief that the Watch has no authority or right to be in Lower Sanctuary until the Council makes a demonstrative move to reassert its control. It is a nebulous area and disagreement with my position is strong on the Council.
At this stage, I've made it known that my Knights will defend the canal gates. Furthermore, they will perform extraordinary actions to ensure that lifes are protected from criminals or future 'foreign invasions' that are not ordained by a Council resolution. The recent trial sadly was an example of specific members of the City Watch espousing their political viewpoints while attempting to prevent the growing acceptance of my Knights and political views in the city.
Elizabeth West Side is a gangster that controls portions of the city of Sanctuary's Lower Wards. She is of the belief that Sanctuary's Lower Ward is now a sovereign nation and is aided in this belief by the refusal of many on the Council to approve an act condemning this idea.
As for an authoritative hierarcy, I fear you will find no such thing. Nominally, the mayor oversees the entire city's beauracracy and defense. In practice, the Council passes legislation and handles many of the broader initiatives. Each independent defense force in the city under nominal Council control truly operates with far too much leniency often operating on their own personal policies without regard to a wider city control. My own Knights are even more nominal in this process, being a military force under command of Lord Gregor Toboerski who is using this force to supplement the city in a time of crisis.
I do hope this answers your questions. I'd be pleased to discuss these sordid realities in greater detail in person or through correspondence. While I admit a certain disdain for some of Helm's more extremist adherents, I find his Church on the whole to be that is entirely in line with the beliefs and policies I expouse.
In Regards,
Sir Dungal Toboerski
Grand Magistrate of the Toboerski Knights
Councilor