Prologue
Disclaimer: Not mine, except for some of the characters that just popped into my head, but they don't appear here anyway.
It was whispered, long ago, that House Elves were descended from two powerful races. The Goblins were also descended from those great people. A long time before the humans came to live in the magical world, before magic was taught in schools or recognised as something to be destroyed by Muggles, there lived the race of the Elfin and the Dwarves.
The dragons then were intelligent creatures, with potent magic and cunning minds, the dwarves masters of their mining and metalcraft, the Elfin possessing powerful magic, isolating themselves from the rest of the world in their forest and river valley havens.
One day, it was said that an Elfin maiden, with hair of silver starlight and eyes of glowing embers, fell in love with a rich, powerful and handsome Dwarf lord. Relationships such as those were unheard of, scorned at, but eventually, the opposition died down, as the Dwarves and Elfin were natural born enemies.
Those relationships became more common, and as time went by and offspring were born, a new Halfling race was created. As the centuries passed, the Elfin fled back to their forests and valleys, the Dwarves back to their mines and forges, as a war waged by the developing humans raged across the land and all creatures of magic and wisdom, the dragons and centaurs and merpeople, fled into their sanctuaries. The Halfling races, unable to choose, were captured and enslaved by the humans, or rather, the kinder, helpless, Elfin descendants were captured and enslaved.
The House Elves' magic was perfectly tailored for combat, but not wanting to hurt other life-forms, they allowed themselves to be captured, and began using their magic for housework jobs, assisting the humans. The Goblins, however, taking after the Dwarves, went into a fierce war with the humans, until they backed away.
Over time, wizards came and started to develop as people, taking the House Elves with them, as the Muggles started trying to burn them.
During those days, relations between Goblins and wizards worsened, until the Goblins revolted against the wizards' rule.
It had been centuries since the last Elfin had ever been seen, centuries since a dwarf sold his craft to a human. But they were always watching, always waiting, for the right time, when the world would truly need them again, for a time when everything was going to hell.
A/N: I probably shouldn't be adding new races and changing stuff this much, but that's what fanfiction is for so… Anyway, this just popped into my head, and it probably isn't as good as it should be, but really, this is just like and extended summary of where the story comes from, rather than how the story will actually be.