Vera Moray, later only known as Granny Rags, was a wealthy aristocrat living in the high reaches of society who, after an ill-fated expedition to the Pandyssian Continent, became a practitioner of black magic and descended into madness. During the events of Dishonored, she is a homeless and blind old woman who is often harassed by her fellow citizens. While she pretends on the surface to be vulnerable, destitute, and senile, her true and darker nature lies underneath as shown over the course of the game.
She is a powerful and partially immortal witch who, like Corvo Attano, employs supernatural powers that were granted to her by the Outsider.
Decades prior to the events of Dishonored, Vera was the revered wife of Lord Preston Moray, head of the Moray family (which was, at the time, similar in wealth and prestige to the Perth, Inchmouth, Carmine and Boyle families). It is noted by the Outsider that Vera was once a well-known figure at court; she received marriage proposals from a great variety of men, including an Emperor. She also personally notes that of her many friends, she was the only one to be painted by Anton Sokolov when he was first coming to prominence.
When she did marry, she and her husband traveled widely, "to the far ends of the Isles." At an indeterminate time, she joined her husband on an expedition to the mysterious continent of Pandyssia. The expedition was marked by madness and death, which started when Vera took an interest in the practices of the continent's ancient peoples. This appears to be where she first came into contact with the Outsider. The experience caused Vera to lose her sanity and later go blind. At some point, Vera gained a level of immortality by binding her soul to a cameo of herself, an act taken from her husband's journal notes concerning an ancient Pandyssian legend.
On her return to Dunwall, Vera's circumstances spiraled into misfortune—she lost her status in high society and began living on the streets. According to Slackjaw, when he was a young child, Vera was already well-known as Granny Rags.
Granny Rags provides Corvo with two secondary missions during his quest to kill Thaddeus Campbell, the High Overseer. Her first mission requires Corvo to deal with a group of "gentlemen callers" who have come to collect protection money from her. The second involves infecting their elixir still with the rat plague from viscera found at the Offices of Dr. Galvani. Both may be accomplished non-lethally; however, infecting the elixir still does increase chaos, and will lead to the appearance of weepers at the Dunwall Whiskey Distillery during House of Pleasure.
At a later point of Corvo's adventure, he comes across Granny Rags's secret lair before entering the Dunwall Sewers; she is preparing to murder, cook, and eat Slackjaw. Corvo can choose to assist Granny Rags, or engage her and save Slackjaw.
Although she does not appear in person, Granny Rags is also the author of four more side objectives in The Knife of Dunwall and The Brigmore Witches DLCs.