A swampy town called Dankden, peopled by amphibians called "phibs". Humans come, hunting phibs for their hides. Overtime, there is a group of half-breeds too - partly human, partly phib. And some humans hunt the half-breeds' children too. So we have a conflict, eventually resulting in division among humans & burning of a half-breeds' township.
Not exactly my kind of story, but not boring either.
Fact sheet.First published: F&SF, October/November 1995.
Download full text from publisher's site (I think this link won't work after a month or so).
Related: Stories about racism.