Residents: The Dark Alfar
We know little of the actual beginnings of the War, as neither side will speak of it, but we do know that a fleeing band of exiles came to Svartalfheim after being expelled from their home. Apparently they got no warm welcome in Asgard or Vanaheim; Jotunheim, Niflheim, and Muspellheim were Jotun-controlled and they did not wish to cohabit with giants and trolls; and moving in on Midgard would invoke the wrath of both the Aesir and the Vanir. As Helheim was only for the Dead, there was but one other choice, and they trooped to the realm of the Duergar and asked for shelter.
They were granted it, but the price was high. The Duergar extract a regular toll from the Dokkalfar as rent, and at first the Dokkalfar resented being tenant to another race which they considered inferior. By this time, however, the two races have come to the point of living together in reasonable peace and harmony. The Duergar outnumber the Dokkalfar many times over, and although the Dokkalfar control the trees on the surface, the Duergar are allies with most of the land-wights, including the spirits of the mountains themselves. Although they are canny and drive a hard bargain, they hold fairly to agreed-upon terms, and thus the Dokkalfar consider it in their best interests not to anger their hosts. There is considerable amicable trade between them, although they mostly keep to themselves, and even the occasional intermarrying.
Since their exile, the Svartalfar have formed their own society which is a near mirror-image of Ljossalfheim, complete with a ruling House. They are less exclusive than the Ljossalfar, though they're quite a bit scarier and tend to fight among themselves much more (the Ljossalfar prefer intrigue and backstabbing, thinking it more civilized). Many years of living alongside the Duergar, who are accustomed to having visitors and friends from other lands, has changed their attitudes towards outsiders, and while they're still very secretive, fiercely loyal to their own kind and not inclined to allow many into their lands, they don't look down on people from the other Nine Worlds, the way the light-elves do.
Niorun's Hall
Niorun is the little-known goddess of dreams. Unlike most of the other deities, she chooses to live in Svartalfheim, where she is honored and revered by both the Dark Elves and the Duergar. Of all the places in Svartalfheim that might be considered halls, Niorun's place is the only one where a traveler could claim sanctuary and be unopposed by residents. However, as soon as one leaves, one is on one's own again. There is also the fact that Niorun's hall is a strange place, and not altogether safe. It is filled with distorting mists of many colors, and one is often overcome by the compulsion to lay down and sleep. If you are a skilled lucid dreamer, her hall can be a good jumping-off point for prophetic dreamwork; if you aren't, it can be deadly.
Niorun herself can be seen as a veiled figure walking through the misty halls, her face almost never seen. If approached, she will speak in riddles and poetry, or say things that one later cannot remember. Offerings to her include colored glass balls and prisms that she can hang up in her hall to rotate and add to the ambience.
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