Long ago, when the Lands of Men were originally explored and populated, several demi-human species also came to settle and hold lands. The Dwarfs, Gnomes and Halflings all formed their own independent entities, but they came to an agreement to form a single united area, Frielund, in the interest of commerce and in response to the taciturn Southron Empire.
The land is ruled by a council of the three races and all three co-exist rather peacefully with the rest of the races of the land. They are very industrious and continue to have contact with their homelands across the seas.
The halfling-state is the most open to humans, conducting trade with the Southron Empire and Northern Kingdom. Although the nomadic halflings don’t maintain borders like the other races, they are quick to establish their claims to land when they are threatened.
The gnome-state is a relatively secretive nation, with walls surrounding its lands. The gnomes tightly control their borders and who is allowed in. They do some commerce with the Southrons, but for the most part, they remain to themselves.
Similar to the gnomes, the dwarf-state controls who is allowed in and out of their lands, but they do a great deal of commerce with both Southron and Northerns. The dwarfs are the most prolific of miners and supply virtually all of the metals to all other races, save the humans in Mhaldor.