Capitol: Skarlahn Feyr (population: 45,000)
Population: 25,000 (87% Ralani, 10% Iskari, 3% other)
Demi-humans: 285,000 (94% Red dwarves, 3% halflings, 3% gnomes)
Humanoids: some (mostly goblins)
Government: Oligarchy
Current Leaders: a 12-member ruling council of dwarvish merchants
Coat of Arms: two grey crossed pick-axes over an anvil on a crimson field
Exports: gold, silver, gems, crafts, stone, toys, weapons,

As the great Dwarf-realms of the north grew and prospered, the Vorheis Clan; the smallest of the five original Dwarf-clans, migrated south to found a civilization in the deep mountains west of the Celadon Forest. The southern Dwarves called the gigantic mountains the "Skarlahn," meaning ‘red stone.’ Because of the Reddish stone that makes up the city of the southern dwarves, they are sometimes called the ‘Red-Dwarves.’ Humans later named the range the Cairn Mountains. Deep within the mountains, the southern dwarves of the Vorheis Clan built their capitol of Skarlahn Feyr, the greatest dwarvish city ever built in the southlands. From there, the dwarves expanded their influence east to the region known today as the the Reach, and south to the coast of what is today Serathyr. The Skarlahn dwarves befriended the humans known as the Ralani and grew wealthy by trading with them and selling them fine weapons and crafts wrought with tempered steel and precious gems. Over time, the southern dwarves grew distant from their northern customs. They even chose different traditions and customs. In Skarlahn, there has never been a Dwarf-king. The Red-Dwarves choose a body of twelve senior merchants or priests to rule as a governing council, called the Marat. Today, the Skarlahn dwarves are the greatest ironsmiths and craftsmen of the Southlands, and easily rival their northern cousins in Orrek. Kharos-Thûngol is far smaller than the northern Dwarf-Realm of Orrek, and is considered by Orrek nothing more than a city-state, but its reputation for wealth and high-quality crafts far outweighs its small numbers. The Dwarf-realm of Kharos-Thûngol has no standing army but can field up to 4,000 dwarvish warriors in time of war.

Life & Society
The dwarves of the south, commonly called Hill-Dwarves, or by some the "Red-Dwarves" because of their predominant red beards, have always lived at peace with the men in the surrounding regions. The men of Ralas, and later Serathyr eagerly traded with the dwarves for their expertly made crafts and toys, the wonder of Corwyn. Only occasional orc and troglodyte raids gave these folk any trouble, and that was seldom. Many dwarves in this region are timber merchants as well as miners and crafters. Both men and dwarves rely upon the timber of the great Celadon Forest and compete for the sales of its exotic woods to neighboring countries. The southern expanse of the Eldir Vaas River is thick with dwarvish barges carrying goods to and from the coastal areas to the Cairn Mountains.

Major Geographic Features
Cairn Mountains: (Skarlahn Mountains) mountainous region near northern Serathyr known to Dwarves as the Skarlahn Mountains, meaning ‘Red Stone.’ The mountains are sparsely populated by men and the few human settlements have little cohesion with one another. However, the thriving Dwarf-realm of Kharos-Thûngol is located within these southern mountains, and its capitol city of Skarlahn Feyr is a magnificent sight. The Axeway runs across these mountains on its route between the Dwarf-city of Skarlahn Feyr and its intersection with the Olde Peninsula Road. The western edge of these mountains is home to several small human communities, the largest of which is the freehold of Dorinvar. The Cairn Mountains are also called the Skarlahn or Redstone Mountains.

Important Sites
Skarlahn Feyr: ‘Hall of Red Stone’ (Kh) (population: 25,000) dwarvish city located in the Cairn Mountains, built by the southern dwarves of the Vorheis Clan in 925/2. It is the citadel of Kharos-Thûngol; the largest independent Dwarf-realm located in the south. The city is fiercely independent from the dwarvish realm of Orrek, but trades with the northern dwarves regularly via the Axeway. Skarlahn Feyr is also home to one of the three remaining Elatir, or Rune-Stones. Skarlahn Feyr has always maintained good relations with the Kings down in Rastios, and for that matter, in Tymor as well. The trade here between the dwarves and the Ralani is the lifeblood of this region.

Local History
In the earliest history of the dwarvish race, it is said there were five great clans. Two of these clans went south to find fortune and build civilizations as the other three clans had done in the north. The two Dwarf-clans were named Vorheis and Arvedui. The Arvedui Clan went on to build the early Dwarf-realm of Khûrzhad, and the Vorheis Clan built the realm of Kharos-Thûngol. In 884/3, a tremendous earthquake struck the region and the realm of Khûrzhad was utterly destroyed and its lands fell beneath the waves. But the Dwarf-realm of Kharos-Thûngol endured and prospered. Like the other four clans, the Vorheis Clanmaster was given one of the Elatir by the council of Sorcerë for use in building and mining the great mountains of their home. After the destruction of Khûrzhad, the few surviving dwarves of the Arvedui clan came to dwell with their cousins in Skarlahn Feyr. Over the millennia, the southern dwarves have fought many wars, coming to the aid of the West during the invasions of Alokkair and Sorimmar, despite their small numbers. The Red-Dwarves have also fought their own wars under the ground, with armies of fierce goblin and orc tribes who fought with them for control of their underground riches and resources. The southern dwarves were once part of the northern Dwarf-realms, but broke away from the northern politics and infighting and remain fiercely independent even today.