Built in cooperation between Qualinesti elves, Thorbardin dwarves and Ergothian humans, the fortress of Pax Tharkas (Citadel of Peace in the elven language) was supposed to be the symbol of friendship between the races after the Kinslayer Wars.
The Cataclysm heavily damaged it. It was near the fortress that the Dwarfgate Wars broke out.
During the War of the Lance, the fortress was occupied by the Red Dragonarmy of Ansalon. Highlord Verminaard settled there with his dragon, Ember. After the Heroes of the Lance freed the fortress, the gully dwarves settled permanently there.