The "Before" Times
Before the ages of gods and mortals, before the seven powers, there were ancients. They formed, destroyed, fought and created as they saw fit, and planted the seeds for the modern world. As bizarre as they were incomprehensible the ancients gave way to the seven powers. These seven powers brought structure and meaning to the world, but seem to have lost interest in the material plane. With their departure, the age of gods and mortals began.
The Dwarven Clans
Dwarves built ancient bunkers and structures into the earth, some to further their unending feuds and clan wars, some devoted solely to furthering a chosen craft. Very few of their structures remain, although those sealed remnants likely hold amazing treasures of antiquity.
The Descent
Whatever triggered the Dwarves to begin building down is a mystery. Rumor says the Dawi heard the calling of a god, although many suspect something even older. They built down lower and lower, and as they descended their machines and constructs became more and more advanced. Some of their descendants, the Duergar, have begun surfacing to trade, and some have come back looking for ancestral weapons hidden on the surface.
The Elven State
As the Dwarves were seen less and less on the surface, elves left the forest and filled their void. They built castles and cities, created the grey sands that guard against wild horrors. They set out over the wild seas and established trade with other cultures and places. By all accounts, they celebrated arcane discoveries and their reign saw more peace than those before or since.
The Erasure
While the Dwarven era dwindled slowly over centuries, the Elven State ended quite literally overnight. One night, on the eve of a festival of the new moon, the cities pulsed with music and celebration. Moments after midnight, not a single elf, save for those still deep in the Wilds, could be found.
The Griffon Society
Even though they called themselves the Elven State, intermarrying with other traveling races left a sizable enough minority of half elves. In the wake of such incomprehensible tragedy, the half elves cobbled together as much as they could into what is now known as the Old City.
The Multiplicity (Current Age)
After the Erasure, the lands sat empty for some time. The Griffon Society retreated into their City, and the wilds reclaimed much. Since then, no one culture has become dominant, no single super power has formed, and all manner of the mortal races have emigrated, recolonized, and rebuilt in this ancient land. While many travelers come to settle and build, nearly an equal number come simply to pillage, raid, and cause mayhem.