The founding of Diveneu began with a desperate alliance born of necessity and divine intervention. The Palestone Bloodline, a band of albino Dwarves who had been outcasts due to their unique coloration, had established a humble village in The Diven Mountain Range under the shadow of Mt. Veridian. Their drive to formalize their settlement into a proper town in this year was a convergence of threats and opportunities that demanded unified action.

The initial catalyst came from escalating raids by The Golzak Tribe, who claimed dominion over the surrounding territory. The Palestones had been defending against the Golzaks for years, watching many other villages in the area fall to their cruelty. In 44 (SAS), the situation reached a critical point where the palestones realized they needed more than just their own strength to survive. The Duergar Clan, seeking refuge from their own Underdark problems approached the Palestones for sanctuary. Recognizing an opportunity, the Palestones offered them shelter and the rights to build The Under-Diven from their old quarries. This alliance brought crucial military strength to defend against both surface and underground threats.

The Bismuth Clan, recognizing the potential of this emerging power center, allied themselves with the palestones early in the Yehr. Their mining expertise and natural territory expansion to Mt. Grimsteel was useful for establishing a growing prosperous town in the area.

By the time the Bismuth Clan had banded with the Palestones, Thraegar Palestone organized a marraige of convenience between his first son Vaddokk Palestone and Hethos Golzak cementing peace in the valley for Diveneu.

The true crux of the town came with Naoplem Sterlay and the ancient silver Dragon Regannia Ag Rokreig. They arrived in the settlement, and created The Tattered Spire in the center of what would become Diveneu. Initially, the palestones did not respect the magics that created this tower, or respect its uses that Naoplem abused after its creation. Over time, as secrets passed into family knowledge, they would restrict its access to only the most respected of individuals. The founding of this tower served not only as a major landmark, but as a critical centerpoint for many Ley-Lines, attracted the attention of the gods. The Panathejor took special interest in this city. Inspiring the now allied Golzak Tribe to create the first Solam Bells.

By the end of Yehr 44, what had been a struggling village of outcast dwarves had transformed into a fortified town with multiple allied populations. A magnificent central spire, and the beginnings of a political structure that would eventually complicate into The Crested Families and The Diveneu Council