Halflings

Halflings are a rarity in Thedas. They are humanoids akin to dwarves and humans, and share many features with these two races. They are usually slightly shorter than dwarves.
They first showed up in Ferelden, following a trade agreement between the dwarves and the Western Alamarri. Because of this trade agreement, surface dwarves become a more common occurrence in western Ferelden. It is believed that they are a relatively young race, birthed from human and dwarven parents.

Sub-Ethnicities

Northern

At first, halflings were looked down upon for being like humans except only weaker. However, some of the tribes in western Ferelden found that they were actually quite useful. These halflings worked jobs useful to their size, such as mining or leather-making.
This created a symbiotic relationship between these halflings and their tribes. They were useful to have around and in return the Alamarri and Avvar tribes would protect them.
In modern day, these halflings are found mostly in northern Ferelden and are seen as second-rate citizens with respect to the law (or the lack thereof). No one will go out of their way to hurt them, but when they have to fight they'll usually be at a disadvantage. With the majority of the law coming down to "you defend what is yours", it is hard for them to assert their boundaries. Usually they will work tightly with local leaders to ensure protection.

Southern

Some halflings departed from the northern villages following Ferelden's unification and moved to the south. They took residence up in the dense swamps and forests of the Korcari Wilds, often amongst the Chasind Wilders. These halflings mostly keep out of the way of other groups. Having lived in such a strange place, they have built up a tolerance to the hazardous environment they live in.
Their skin tones are a bit darker than northern halflings, but to most the difference is indistinguishable.

Spirited

Prior to the Circle of Magi's engagement in Ferelden, some halflings were found to be quite adept at magic. Tribes who had access to these magi used them as offensive back-line evokers. This worked to great success. Many Western tribes in Ferelden rose to power using this strategy, since few others had access to these halflings.
Most reside now with the Circle of Magi.