After the battles between Dwarven, Oretoun and the Hill Dwarves reached their stalemate, Dwarvenhelm cut a passage through the Spine Mountains to the East. This new passage resulted in Illyria suffering an economic downturn as the ore supplied by Dwarvenhel was superior to that produced by Illyria. For Dwarvenhelm to circumvent any issues over their new trade route, Dwarvenhelm signed a treaty with Illyria and created the trade village Market Town.
Dwarvenhelm and Illyria jointly control this new village of Market Town, which has become the single point of contact for trade for the Dwarves on the eastern side of the Spine Mountains. This new trade route relieves Dwavenhelm's reliance on Oretoun for trade.
The Market Town has grown into a small town with embassies from many leading cities and nations.
After noticing how fine the armour, weapons, and trinkets coming out of Dwarvenhelm were, Brennan's Keep set up an embassy. This embassy has now become more of a remote campus of its university than an actual Embassy. So, while Brennans Keep seems to be the junior partner in the three-way alliance, many breakthroughs in creating wondrous items have been achieved through the applied knowledge of Brennan scholars.
Illyria's embassy is more of a trading station that supplies many of the raw materials needed by the dwarves to create their more magical items. Illyria provides many of the natural ingredients required to craft the magic items.
Goranth's embassy is an actual embassy that negotiates mutual protection alliances and trade agreements.
The only failing apparent within Market Town is the difference in moral attitudes held by the various races represented on the ruling council. These different attitudes can and do cause a high degree of friction.