Dwarves in Hallo
Shortly after The Abandoning a greedy, voracious Red Dragon named Hephaestus attacked the dwarven stronghold and capital, Mienus Kar. Hephaestus now rules with savage force, regularly eating dwarves as snacks and burning them for his own enjoyment. The Red Dragon has a insatiable desire for gold and imposes heavy taxes on the dwarves. The dwarven society is slowly crumbling into a constant state of poverty and hardship under the weight of the taxes; all while Hephaestus’s bed of gold and riches grows daily.
Many families of dwarves escaped Mienus Kar and are now actively looking for places to settle down or help in taking back their homeland.
Mountain: Mountain dwarves live in the capital city Mienus Kar which is now occupied by the red dragon Hephaestus. They tend to have pale skin, dark hair, and are extremely strong, skilled craftsmen who deeply value tradition and family.
Hill: Hill dwarves are less affected by the occupation of Mienus Kar but still pine for the lost brethren. They tend to have darker skin, lighter hair, and are wise and extremely durable folk who know the value of a hard day’s work.
See page 18 of the Player’s Handbook.