Gnomes are the Fable III version of the Gargoyles. There are 50 total throughout Albion. They were originally owned by Brian and are first seen in the quest Gnomes are Great! You need to bring an old gargoyle to Brian so he could bring them to life.
After they first come to life, the gnomes will offer good advice compared to the gargoyles insults. However, they soon run away and you have to get them back in the quest Gnomes are Evil!
From here on the gnomes will insult you whenever you pass by (their insults are much harsher and funnier than their gargoyle predecessors). Their appearance also becomes more menacing. Whenever you shoot a gnome, it will be sent back to Brian.