Dwarves

Note: The Dwarves were driven from the land by Humans, that is a fact. The history behind it is 100% not set in stone.
Long before the elves or first men arrived the Dwarves lived peacefully on the the continent of Caldara. They spent the warm months towards the south would migrate north before the rains and snow set in. The tribes were nomadic and would hunt for food each day. Inter-tribe conflicts mostly revolved around marriage arrangements or territorial conflicts. Leaders of the tribes were councils made up of elders. Each year, every tribe would congregate to celebrate The Birth of the Morning Star.
The arrival of the elves did not upset the balance as both races kept to themselves. However, the arrival of the human ships was the beginning of years of conflict. The humans came in force and drove the dwarves from their traditional lands. The dwarves requested assistance from the elves, though their response was to delve into seclusion deep inside the forests. Eventually, the Dwarves fled to the mountains.
They lived in caverns and natural cave systems, but began to expand by creating their own networks of tunnels. As they dug, they found metals and minerals they had never seen before. Before long the tunnel systems ran deep into the bowels of the earth, and the dwarves had amassed riches they could never believe.
Although most dwarves had become used to living in the mountains, some chose to live in the lands of the humans. They generally squandered their wealth, and made no attempts at concealing how much gold they had. By the time they realised what they had done, humans were already marching on the mountains, to claim the riches of the land. The Battle of Then Dorahl lasted only two days before the dwarves surrendered. They left the mountains and marched north, exiled from the land.
Some dwarves continued far north into the wastelands; it is not known if their clans lived on. Others found caves in near the borders of the waste land and started digging new mines to escape the heat.
Some dwarves have made their way back into society, but are treated with disdain. They are perceived by many to be a lower class of being and are not welcome in some trade establishments. The town of Yarrin has the largest population of dwarves, and has laws that prosecute open prejudice against them.