Blue Fairy is the enchantress who gave life to the wooden puppet Pinocchio. She lives in the sky as a star who descends upon the Earth to grant wishes and serve retribution to people she doesn't like. She is the same sorceress who placed the curse on The Beast.
Known Acts of Magic
When a 90 year old Luigi was regretful of never having a son, he wished upon a star that his existence would finally show a purpose. The Blue Fairy brought a wooden puppet to life and assigned Jiminy Cricket as his "conscience" since Pinocchio is such an unscrupulous sociopath. She later found Pinocchio trapped in Stromboli's wagon where she gave him an unnecessary lecture on lying.
Blue Fairy also transformed The Beast into, well... a beast for being a whiny and bratty little cunt. She provided him means of escape; he must earn the love of a woman. This was only so she could sadistically watch his desperation, but it worked to her surprise.