Dwarves are one of the original races created by the world dragon Kiera, but remained relatively unheard of until the around the year 20000AB where they emerged from deep within the mountains of most continents.
Dwarves can today be found on most civilized continents, but still mainly stick to mountainous regions. City dwelling dwarves have been known to dig deep under the earth to build their homes, and occasionally even expanding to entire Dwarven districts deep underground, sometimes unknown to the city above.
They are rumored to have long ago dug a network of tunnels connecting every continent’s major city, but no evidence has been found of these ancient tunnels, and no known living sane dwarf has ever claimed to have seen them. The fact that they originally emerged around the same time all over Kalos does however support this theory.