Upon the world is the sea known as Melora's Eye. It is a great and terrible body of water but our focus is smaller. As we travel along the Eye's coastline we find an interesting landmark: A great cliff, split by a passage of water. This is known by the dwarves as the Kharaka Strait and it leads to a massive bay known as the Teardrop.
The Teardrop Bay is a beacon of light in a world of darkness and is where the civilized races have come together in a co-existence born of necessity. Here they have room to separate without being too far from each other for help and trade.
First are the Dwarves of Kharaka-Dhun. They have carved a small kingdom from the eastern cliffs that protect the bay from the raging sea. Their lives are spent within the mountain and their only visible signs of habitation lie in the great bridge that connects the two cliffs above the strait, and the large entrance at the base of the mountain.
The Gnomes live on the western cliff. They are peaceful neighbors of the dwarves and trade with them regularly. Their great mountain home is known as Figget-Dhun. They live to study the arcane and mechanical mysteries of the world and the great towers atop the mountain are a sign of their successes. They freely welcome all visitors, provided they come in peace.
The Halflings have a small set of villages on a miniature archipelago, known as Teshyrr, in the middle of the bay. They have set themselves up as master fisherfolk and are renowned for their boat-craft.
To the south is the Human city of Savior's Reach. The humans strive for balance in all things, and their nearly chaotic city is a reflection of the many different styles and opinions this has caused. They are usually the voice of each extreme in any argument but have a tendency to find common ground with any and all of the races. They are also the founders of the Guild of Starlight.
To the west are the Dragonborn, in their city of stone, DaraKhun. Here they strive to regain their lost empire: Arkhosia. There is much dispute on how this is to be done. Some study arcane secrets, lost to the ages. Others seek out powerful artifacts from the ancient past. And still others, secretly, believe they should seek out the dragons and serve them once more. They have founded the Guild of Lost Wings.
The Elves have found solace in the wilderness surrounding the bay. They never stay in one place for long and seek a closeness with nature. Their way of life is the riskiest of all the civilized people as they frequently find themselves no more than a breath away from the most dangerous of creatures and adversaries. Some Elves are known to have relations with Humans, creating the Half-Elves. While never quite at home in one place, most Half-Elves find more acceptance among Humans, than with their nature-minded relatives.
Tieflings, the strange demonic people of the city of D'Ohr, settled on the east bank of the bay. Ruled by a council of powerful family clans, the Tieflings have a reputation for underhandedness, deviousness, and cunning. While not necessarily evil, most Tieflings won't shy away from doing what must be done to achieve the goal at hand.
Although this covers the major cities of the races of the bay, there are numerous towns and villages spread throughout the area. None venture too far from the relatively safe waters of the bay, but some adventurous souls have settled in remote locations, so as to escape the influence of the larger cities. While they like to think they are independent, most of them still have at least a small Guild house to protect them.
There are all sorts of monsters and creatures in the wilderness, some of which have sought solace with the more civilized races. Aarakocra can be found flying around the gnomish spires, lizardfolk swimming and fishing with the halflings on Teshyrr, and tabaxi scouts running through the trees with the elves. They are minorities, and each has had to prove itself trustworthy. The large population of half-orcs proves how brutal these creatures can be. Although not shunned by the human population, most half-orcs can never escape the truth of their terrible origin.