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When the Fifth World was "born" in Year 0, the gods did not just seed the world with humanoids. On the vast, isolated, and mineral-rich North-Eastern continent of K'thari, they placed the Dragons.
They were the "First Children," seeded onto the world as its original wardens, a divine chessboard of opposing philosophies.
The Metallic Dragons, followers of Bahamut, were placed in the fertile, mountainous regions of the west. They established "states" built on justice, order, and philosophy.
The Chromatic Dragons, followers of Tiamat, were placed in the volcanic, harsh, and resource-rich lands of the east. They built tyrannical "states" built on greed, cruelty, and conquest.
The Gem Dragons, followers of the neutral Sardior, were placed in the high, crystal-laced central mountains. They built psionic monasteries, content to observe, meditate, and remain in perfect, isolated neutrality.
For the first few years, K'thari was a continent of uneasy balance. But the continent, however vast, was not big enough for all three. The Chromatic dragons, "too evil or too greedy to be able to share territory," inevitably began to raid the "neutral" Gem dragon territories for their crystals and the "ordered" Metallic territories for their hoards. The First Dragon War was inevitable.
The "First Dragon War" began in earnest around Year 10. Tiamat's Chromatic dragons, in their arrogance and greed, launched a massive, coordinated assault, not just against their primary rivals, the Metallics, but also into the resource-rich central mountains of the neutral Gem Dragons.
This invasion shattered the Gem dragons' psionic monasteries and their millennia of isolation. They were forced to call a "Great Conclave" to determine the fate of their kind. The debate was furious, and it tore their entire civilization apart.
1. The "Pro-Metallic" Faction (The Idealists)
Leaders: Amethyst and Crystal Dragons.
Argument: They were the most philosophical and order-driven of the Gem dragons. They argued that Tiamat's brood represented true chaos—an unthinking, consuming void that was anathema to their psionic harmony. They believed "neutrality" was a death sentence and that the only way to restore balance was to excise the Chromatic "cancer" from the world.
Decision: They formally allied with the Metallic dragons of Bahamut, bringing their psionic might to the "Grand Coalition of Order."
2. The "True Neutral" Faction (The Isolationists)
Leaders: Emerald and Sapphire Dragons.
Argument: They were the most reclusive and dogmatic. They saw both Bahamut's rigid, unthinking "Good" and Tiamat's all-consuming "Evil" as equally disruptive to the psionic "Great Mind." They declared a "plague on both their houses."
Decision: They refused to take sides. In a massive, combined psionic effort, they sealed themselves in, weaving a great "Veil of Ignorance" around their mountain territories. They did not secede by leaving; they seceded by vanishing, effectively removing their mountains and their people from the awareness of the warring factions, waiting for the "storm" to pass.
3. The "Pro-Chromatic" Faction (The Opportunists)
Leaders: Topaz and Obsidian Dragons.
Argument: These were the most selfish, reclusive, and easily-corrupted of the Gem dragons. The Topaz dragons, in their isolation, already hated the Metallics for their perceived arrogance. Tiamat's agents, masters of deception, came to them with promises of new territory, psionic secrets, and, most of all, "respect." They convinced this faction that the real threat was the "tyranny" of the Metallic/Amethyst alliance.
Decision: They formed a shadow pact with Tiamat, allying their forces with the Chromatics.
The "Great Conclave" shattered. The Gem dragons were now fighting a brutal civil war amongst themselves at the same time the main war raged. This schism was the single greatest tragedy of their race, and it sealed the fate of the Chromatics.
The war raged for decades. The "Grand Coalition of Order" (the Metallics and their Amethyst/Crystal allies) was winning. Their combined might of divine power and focused psionics was systematically crushing the combined armies of the Chromatic and their Topaz/Obsidian allies.
The Chromatic dragons, facing total defeat, grew desperate. Led by their greatest Black Dragon necromancers, they turned to a forbidden, ancient power. They committed the ultimate atrocity: they began to practice necromancy on their own fallen brethren, creating the first Dracoliches.
This act was not a simple spell. It was a profound violation of the natural order, a "scream" of undeath so powerful that it tore at the fabric of the world.
This was the war's turning point. It was no longer a war of territory or greed; it was now a holy war of Purification. The Metallic and Amethyst dragons, seeing this abomination, redoubled their efforts, their goal shifting from mere "victory" to the "total annihilation" of the Chromatic leadership that had allowed this.
The "Dracolich Atrocity" was the Chromatics' final, desperate gambit, and it was their doom. The war was no longer about territory; it was a holy war of Purification. The "Grand Coalition of Order" (Metallics, Amethysts, and Crystals) now fought with a unified, righteous fury to eradicate this new, undead plague.
This final phase of the war was the most magically volatile. The clash of massed psionic power, divine Metallic breath weapons, and the world-tearing negative energy of the Dracolich rituals created massive, unpredictable "magical shockwaves."
These shockwaves were the "far more powerful effects" that the "True Neutral" dragons had feared. Their "Veil of Ignorance," the psionic shield protecting the Emerald and Sapphire dragons, was not foolproof. It began to flicker.
A psionic monastery that was perfectly hidden one day would, the next, find itself suddenly, terrifyingly exposed on the edge of a raging battle. These isolated, neutral dragons were forced to make the individual, tragic choices their leaders had tried to avoid:
Some were simply annihilated, caught in the crossfire before they could react.
Some, like a terrified faction of Emerald dragons, chose to flee, abandoning K'thari entirely to find a new home (perhaps in the remote islands of the Equator).
Others, finding their monasteries under direct assault by a Chromatic legion, were forced to choose a side, reluctantly allying with the Metallic patrols to survive. The "True Neutral" dream was dead, shattered by the war's sheer magical violence.
The war's end was now inevitable. The "Grand Coalition," bolstered by their new, reluctant Sapphire and Emerald allies, was an unstoppable force. The Chromatic armies were broken, their Dracolich leaders hunted down and destroyed.
By Year 60, the war was over. The surviving Chromatic dragons (Reds, Blacks, Greens, Blues, Whites) and their "opportunist" Gem allies (Topaz, Obsidian) were rounded up. They were not granted a place in the new K'thari. They were Exiled.
This "Great Exile" saw thousands of defeated, enraged, and evil dragons flee K'thari. They crossed the great ocean, seeking a new, undefended continent where they could build new lairs and begin new hoards.
They found the Forsaken Demesne.
This act is what seeded the Demesne with its "dragon problem." The chromatic dragons that the Nine Clans of the North and the heroes of Galax County in the South must hunt for their traditions are the direct, bitter descendants of this defeated, exiled army.
The "Great Exile" was not a single, unified retreat. It was a chaotic shattering of the defeated forces into three distinct, and very different, factions.
1. The Victors (The New Wardens of K'thari)
Factions: The Metallic Dragons and the "Victorious" Gem Dragons (Amethyst, Crystal, and the surviving Emerald/Sapphire isolationists).
The Lesson: They had learned the lesson you described: true neutrality requires a stable, Good-leaning world. Their old isolationism was a failure.
The Aftermath: They began to rebuild K'thari, establishing a "New Neutrality" (or "Engaged Neutrality"). They became the "Wardens" of the continent, with the most powerful Amethyst and Gold dragons even taking over the tainted lairs of their defeated enemies, not as a prize, but to guard them and ensure the evil could never return.
2. The Chromatic Exiles (The "Brute Force" in the Demesne)
Factions: The surviving Chromatic Dragons (Reds, Blacks, Greens, etc.).
The Lesson: They learned nothing. They were a defeated, enraged, and leaderless army.
The Aftermath: They fled across the sea and scattered into the Forsaken Demesne. They were the "brute force" of the alliance—powerful, greedy, and chaotic. They did not have the formula for the Dracolich; they were just the foot-soldiers. These are the dragons that the Nine Clans of the North and the heroes of Galax County now hunt for their "Purification" tradition. They are a dangerous, but known, threat.
3. The Dracolich-Keepers (The True Exiles)
Factions: The "Pro-Chromatic" Gem Dragons (Topaz and Obsidian).
The Lesson: They learned a terrible lesson: not that what they did was wrong, but that their choice of allies (the Chromatics) was inefficient. They realized their error was in attaching themselves to the chaotic, brutish, and stupid Chromatic horde.
The Aftermath: These dragons, the true architects of the Dracolich formula, did not flee with their failed allies to the Forsaken Demesne. They were too smart for that. They saw the "Grand Coalition" coming, and they executed their own secret, strategic retreat.
The Great Secret: They fled to a different, unknown part of the world (perhaps a hidden island chain, or deep in the Underdark beneath the Vishani). And they took their knowledge with them: the complete, unholy, psionic-arcane formula for creating Dracoliches. They are the true "cold war" threat of the Fifth World—a "lost" faction of hyper-intelligent, amoral, psionic dragons who are now, in secret, perfecting the world's most dangerous weapon.
Government System: The Great Conclave (A Council of Ancient Dragons).
Capital: The Apex (Central Mountains).
Population: Metallic Dragonborn, Kobolds (Civilized), Genasi.
Ruler: The Gold & Silver Ancients.
Geography: Fertile mountains and coastal plains.
Structure: This is the "Civilized" heart of the continent. It looks like a high-fantasy utopia. The dragons here are Philosopher-Kings.
Major City: Aurum (The City of Gold). Built around the lair of the Ancient Gold Dragon, Aurelius the Lawgiver. It is a city of open-air forums, massive marble libraries, and universities where dragons teach philosophy to humanoid students.
The "Counties": These are "Protectorates." Each valley is protected by an Adult Metallic dragon who acts as the local Lord/Judge, settling disputes among the Dragonborn farmers and artisans.
Ruler: The Amethyst & Crystal Ancients.
Geography: The high, jagged peaks of the central range.
Structure: This is the domain of the Gem Dragons (The "New Neutrality"). It is a land of quiet contemplation and psionic study.
Major City: Mind's Rest. A city of floating crystal spires levitating between the mountain peaks. The inhabitants here are primarily Gem Dragonborn (rare) and psionic monks.
The "Counties": These are "Sanctuaries." The Gem Dragons value privacy. Their territories are clearly marked by mental "buoys." You only enter if invited.
Ruler: The Bronze & Copper Ancients (The Militant Faction).
Geography: The scarred, volcanic, and harsh lands formerly ruled by the Chromatics.
Structure: This is a Military Occupation Zone. This land is not safe. It is tainted by centuries of Chromatic rule and the "Dracolich Atrocity."
The Mission: The Metallic Dragons here call themselves "Wardens." They have taken over the tainted lairs of the exiled Reds and Blues not to live in them, but to guard them.
Major City: Vigilance. A grim, fortress-city built of black stone (repurposed from a destroyed Obsidian Dragon citadel). It houses the "Army of the Conclave"—elite Dragonborn paladins and rangers who patrol the ruins, hunting down any lingering undead or constructs left behind by the exiled Chromatics.
So, K'thari does have "cities," but they serve the Dragons.
You don't have a "Mayor"; you have a "Speaker for the Wyrm."
You don't pay taxes in gold; you pay in service (mining, crafting, scribing) to the Hoard.
The "nobles" are the Dragons themselves, and the "knights" are the Dragonborn who serve them.