Halfings

Halflings appear much like half-size humans, and are sometimes mistaken as midget humans or human children. However, halflings are a distinct race, and cannot interbreed with humans. Anywhere in the Known World where humans live, you will also find halflings.
In urban areas, halfings typically reside and work interspersed with the other races. In more rural settings, they often set up their own villages, or small neighborhoods within another village that is made up of predominantly one other race.
There are no known halfling-only, or halfling-ruled, nations. However, some ancient texts from before The Shattering imply that there were halfling kingdoms before the God Wars.