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Once the battles finally ended and peace returned to Sapphire Temple, the people were returned to their homes after we repaired them. It was easy to repair houses and such by imbuing the materials with souls and then shaping the materials as if they were golems. Like that not only all the houses became mighty golems that'll protect the city and regenerate if damaged, but the city was reformed and remade anew.
There were no Paladins left alive, and the church of water was completely destroyed, the building was made into smithereens and then I replaced the area with an open field where people can go to freely collect water from the Oasis anytime. Naturally, we also demolished the walls surrounding the Oasis.