Common knowledge is that the continent used to be one kingdom. It was a kingdom that divided amongst the children and siblings of the King Alarandrath the Old. He was a moon elf, and in Alara elves do not breed specific races of elves, so drow elves are not underground miscreants they also do not have light blindness, but are dazzled like orcs. The continent divided among the family and when the humans came with their slave armies from another Continent (yet to be completed) They took the land and slaughtered the families. The elves that remain are xenophobic and wary of other races. They have made their home in the Eldeen Court. This is 400 years later the dwarves broke the surface in Mount Halruaa and forged their mountain fortress. They had ore and metals and the skills that the humans did not so they managed to mingle in the new developing kingdoms.
The year is 1024 after the continental tear, and the human armies have become complacent, after winning the war civilization is beginning it's upstarts, the human religions have begun building their temples and bands of malcontent became bandits, who led to mercenary work, which then begun hunting bandits. The land split into 13 kingdom each ruled by human leaders but for the Eldeen Court which is held by the few remaining elves and their queen. Eventually things settled down and though the elves have resentment toward their human invaders, they have forged a peace and their kingdom was allowed to hold court in the ruling kingdom of Alara.