The Elder Races were the first races to come into existence with sentience and empathy, created by the Gods in the same way the Grand Monarchs created them. There were originally five elder races, however one of them, the Vishtari, died out hundreds of years ago.
The Elder Races have been around longer than anyone, and as such hold more land than any of the other races, and often more powerful empires too. They are no different from any of the other races in any way other than their longer histories, however there are some who believe belonging to an Elder Race makes them better than the other races, a belief held mostly in the more influential and ancient families.