As the ancient texts first scribed by Draxal Rhan,( known as the Speaker of Helzog) tells us, before the time of mortal comprehension their was a great war between the Primordial Titans and their natural enemies, the dragons. The two sides clashed and after a long period of war, the Titans fell and from their bodies the world below was forged. The dragons themselves weakened from this long war, began to slumber. In their idleness a threat to their power emerge birthed from the essence of the titans, a being to which is now referred to as a God. Guntera the King of these gods waged war against the Dragons, who fled before the raw power of the Gods. Guntera with the help of his children Urur, Morgothal and Sindri banished the Dragons from Valheim (the Realm of Divinity) to the world below, robbing them of their divinity. 

The gods lived in peace for a number of years alone under the keen rulership of Guntera. Helzog brother to Guntera, grew listless in this peace, and saught purpose for himself and even for the other gods. Helzog in his search for answers went against his brother's wishes and traveled to the world below. Deep below the earth, Helzog built himself a forge and from said forge began to meld stone, with water, and clay. From this Helzog created the first Dwarf, and the world of Knurlaheim would be changed for ever. 

If Draxal Rhan, and the Dwarven Clergy are to be believed then the dwarves are the oldest race (aside from the Dragons), proof against this exists amongst secular scholars from all over who have resisted the attempt by the Clergy to stomp this out. 

In our best estimations, the oldest race (aside from the dragons) is in fact the elves who can live to nearly twice the age of the average dwarf. Ancient elven architecture predates Draxal Rhan by nearly 2000 years and their are signs to point to a civilization even older than theirs, which can be seen deep within the earth, ruins known as Vangheilgar (or Place Forsaken by gods) these types of ruins are scattered in Uderheim, with a few cropping up above ground in Knurlaheim. These ruins are sometimes populated with strange creatures unseen in any other part of Knurlaheim and thus are extremely dangerous leading to little to be known about them outside from a few abandoned specimens aboveground.  ~ Jalad Frostleaf of the Crimson Seekers