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Question: So what happens to Dale and Laketown and the body of Smaug? It appears that Dale was renewed after the refugees of Laketown moved in?

Answer: In the book, many of the refugees from Lake-town move into Dale, with Bard as their king. While Esgaroth/Lake-town has been destroyed and the lake putrefied by Smaug's body, they rebuild a new town with their share of the dwarves' treasure to the north of the original town (under the Master, who is not crushed by Smaug in the book, but does later die in the Wastes after fleeing with the town's gold).

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