The Dwarves have been split into three different realms due both to the lore problems a single dwarven kingdom would have caused and to be able to include as much of the faction as possible. At the beginning of each game the player is able to choose one of the three factions below.
The Lonely Mountain, also known as Erebor, was the greatest dwarf kingdom in Middle-earth. Sindarin is a mountain northeast of Rhovanion. It was also the source of the River Running. The time period of the faction is situated after the death of Thorin Oakenshield when Dain is king. Erebor had a strong, well-armored and equipped Dwarven army able to defeat even the toughest foes. The army consisted of over 10,000 Dwarves. They had only infantry and artillery machinery. It was possibly the strongest artillery in Middle-earth as it is stated that a huge army of orcs tried to attack Erebor, "but they were no match for Dwarven machinery."
The Iron Hills was a range of mountains in Middle-earth and a realm of the Dwarves of Durin's Folk. The Dwarves of the Iron Hills were the clan of Longbeards or Durin's Folk and so were the most noble Dwarves. They had friendly relations with the Dwarves of the Lonely Mountain because Grór and Thrór shared the same blood. The three kingdoms were very linked and relied upon each other for trade and support, and of course the royal family of the Dwarves was all related. An example is the close friendship between Thorin and his cousin Dain Ironfoot.
The Blue Mountains (Ered Luin), also known as Ered Lindon, was the mountain range at the far west of Eriador. The Blue Mountains, the Iron Hills, and Lonely Mountain were the main areas of Dwarf colonization by the late Third Age. During the 4000+ years following the cataclysmic sundering and catastrophic downfall of Beleriand, when the mighty Dwarf fortress-cities of Nogrod and Belegost were inundated by the sea, it is possible that the Dwarves rebuilt those cities to their former splendor.
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