Telma's Bar

Telma's Bar is a small, out-of-the-way hangout located down the southernmost alleyway of the Hyrule Castle Town South Road in Twilight Princess. It is reputed to be popular amongst soldiers and traveling swordsmen alike. Telma's Bar is owned by Telma, a brave and kind-hearted Gerudo woman who accompanies Link and Ilia in transporting a sick Ralis to Kakariko Village for medical treatment. After spending a short time in Kakariko Village, she soon returns to her position as proprietress of the bar, welcoming Link if he should ever enter in the future.

Headquarters of "The Group"
Telma's Bar is most notable as the headquarters of "The Group", four members of Hyrule's elite (Rusl, Auru, Shad, and Ashei) whose mission it is to help Link destroy the land's darkness brought on by Zant and indrectly, Ganondorf himself, through the collection of Mirror Shards. Although it is not absolutely necessary to return to the bar throughout the course of Link's journey, certain members of "The Group" venture on their own to the location of the next Mirror Shard; by talking to the rest of "The Group", they will direct Link in the direction of the missing member. The first time human Link ventures into Telma's Bar, he meets "The Group", but they speak very little before snubbing him off, pouring over their map of Hyrule; they only realize Link's worth after he successfully completes the Lakebed Temple.

A passage outside the bar links to the dungeons of Hyrule Castle: perhaps one reason, convenience and comfort aside, why the aforementioned group meets there in particular. Louise, Telma's cat, will eventually direct Wolf Link to this hidden passage leading to Hyrule Castle, and will later help Wolf Link find the Wooden Statue to restore Ilia's memory.

Trivia

 * Telma's Bar, after defeating the Lakebed Temple, can be entered anytime, but the only necessary reason Link has to return is to obtain the Invoice from Telma.
 * Whenever Link enters the bar in his wolf form under non-Twilight circumstances, he will be kicked out by the Goron resident.