Alitha was a "slightly nasty" old woman who resembled a witch. After becoming an outcast from society because she resembled a clichéd villain from the stories told by storytellers, Alitha joined Shiri and Zounds, two other outcasts.
Alitha, Shiri, and Zounds had drinks at the Severed Paw on the day that Grayling Frimlish came to Vadhoc. When she heard Vislor Turlough and Frimlish talking about the Fifth Doctor, Alitha assumed the Doctor to be the Storyteller and told Shiri and Zounds to take Turlough and Frimlish hostage. Alitha aimed to use the hostages to make the Storyteller tell a story where - unlike in regular stories - characters resembling Alitha, Shiri, and Zounds were not villains but heroes. However, as events played out it became clear that the Doctor was not the Storyteller and that the real Storyteller was one of the hostages, Grayling Frimlish.
Upon the request of Alitha, Shiri, and Zounds, Frimlish told a story with them as the heroes. In the story, Alitha was a misunderstood old woman who was incredibly brave, brave enough to face the Infernal Flaming Spectres from the Catacombs of Utter Dreadfulness. (AUDIO: The Last Fairy Tale)