Reiner and Willy and all my sprites come from:
http://www.reinerstileset.4players.de:1059/englisch.htm

Basically you as the player will build buildings, roads, plant flower beds etc. A fairy home would then generate a fairy that starts walking along the road. Whenever the fairy passes a flower bed she 'works' in the garden and the flowers grow.

Basically just like any other city building game (Zeus, Caesar etc)

Not sure how to do the enemies except by having a specific unit that fights them.... needs more thought