More than 500 years ago, clans of dwarves and gnomes made an agreement called the Phandelver's Pact, by which they would share a rich mine in a wondrous cavern called as Wave Echo Cave. In addition to its mineral wealth, the mine contained great magical power. Human spellcasters allied themselves with the dwarves and gnomes to channel and bind that energy into a great forge, The Forge of Spells, where magic items could be crafted. Times were good, and the nearby town of Phandalin prospered as well.