Balin was the husband of the now widowed Steria in New Ashos. After he died and became a zombie Steria remained under the impression that Balin was still alive and well despite his physical as well as mental state.
Steria had been feeding her own blood to Balin until she could no longer which forced her into having to lead others to the area. She will run away and refuse to speak to the player after Balin has been permanently put down.
"You... You killed him! YOU KILLED BALIN!! YOU MONSTER!" -Steria