The “halfling” nation, the Republic of Laric is a melting pot for all the civilized races of the known world, including much of the Dragonborn and Half-elf populations. Many of the towns are the traditional labyrinthine halfling communities, but since the winding underground streets, the short height of the tunnels and general closeness of living are hard for the larger races, quite a few human-style towns have arisen over time. Even these resemble halfling architecture though, in that they cover their rooftops with living plants. There are also some great cities remaining from ancient human Kingdoms, most notably the Laric capitol of Bankton, and the glorious island palaces of Eloyah.
Since the Deluvian incursion that conquered all of Verandi, great tensions threaten to divide Laric society. In a highly divisive referendum, at that time the nation decided to cede their entire coastline to Deluvia, in the hopes that giving in to the demands of the fish-men would avoid a bloody war. At the time of the vote, the populace was terrified by the tales of Verandi refugees… the invisible kua-toan legions, the massive hordes of ‘expendible’ aquatic slaves, and the lengendary unstoppable warrior monks, the Monitors. However, over time, a great deal of resentment has built up, and many believe it was a mistake to give in so easily, and the descendants of those who had to evacuate their homes by the ocean are now convinced that if they had but called on the dwarves to aid them, they could have fought off the evil empire.
In Laric, now, among halflings and the other races who live there, there is a great fear of spies and infiltrators (bribed with the treasures of lost and sunken cities), and the Halfling Marshals are overtaxed between looking for spies, preventing lynchings and mob violence against rumored spies, and at the same time trying to prevent rebel insurgent groups from entering the area of the Peacebond and jeopardizing the treaty with acts of terrorism.