Islands of Yhb
The proud Vault Dwarves live deep in sealed mountain strongholds known as Vaults. Free from outside influence, these vaults cling to tradition and have remained mostly unchanged for hundreds, sometimes thousands of years. Vault Dwarves view the surface Dwarves as traitors to their heritage. No non-Dwarf has ever seen the inside of a Vault.
Dwarves that leave the safety of the vault are forbidden to return. Exile is the harshest form of punishment in Dwarf culture, and as such, Dwarves on the surface are widely viewed by the other races as criminals and thugs. In spite of this, Dwarves are found living in human cities all over Yhb. While some do, in fact, continue to make use of their criminal talents, the majority of surface Dwarves have adjusted to life in human cities, eking out meager livings as blacksmiths and merchants. A minority of Dwarves have an innate sense for the magics hidden in ancient artifacts, so wizards often employ Dwarf workers on archaeological digs.