From the introduction:
The Dullstrand coast has long been a haven for those fleeing oppression. Centuries ago, fleeing Suloise hid in the Dullstrand where their descendants survive to this day. Around 250 C.Y. smugglers began to use the coast to ship goods from the sea over the Hestmark Highlands into Sunndi. They could follow a minor watercourse entering an inlet up to a little-known pass through the Hestmarks into Sunndi. The settlement at this inlet grew and quickly developed a cosmopolitan character. The three men left in charge at the original pirate base became known as the Masters of Dullstrand. This authoritarian government continues to the present day, keeping its hands off all business in the town so long as it receives the proper "fees."