Ulgarth was settled by the great empire of Raurin, in the height of its power. When the empire was destroyed, it endured centuries of barbarism. Warchiefs united the country several times during this period. They fought many skirmishes with other barbarians, particularly those in Durpar and Var the Golden. In 202 DR, the barbarian tribes were nearly wiped out by the forces of Mulhorand. In 348 DR, a group of outlaws, fleeing the justice of the priest-kings of Mulhorand, came to Ulgarth. There they found a fertile, almost unoccupied land. They settled down, and began raising children and crops.

This new society in Ulgarth gradually grew in power, while its neighbors grew apace. But while Durpar grew as a result of its commerce and its philosophy of balance, Ulgarth concentrated on agrarian pursuits. The Ulgarthians developed a highly structured caste system of lords and peasants. In 1002 DR, the centuries long skirmishes between Durpar and Ulgarth came to an end, as the two countries finally reached a balance of power. There were too many centuries of warfare between the countries for them to completely trust each other.

With their mutual border well defended on both sides, both countries have given up on the idea of conquering the other. Trade between the Ulgarth and the Shining Lands has become a vital factor to both nations. Ulgarth produces many of the items that Durparians trade throughout the world. In return, Durpar trades many exotic items to Ulgarth. Of course, the Durparian merchants usually get the better of any trade. The current king, Drasna the Fortunate, has continued on his predecessor's policy of non-aggression with the Durparians.

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