Each race lives on its own continent. In the Age Before, none of the races knew of the others, concerning themselves with taming their own part of the world.
By the end of the First Age, the more exploration-prone humans and halflings have found the other races and slowly worked to bring them all into contact with each other. Travel between continents is mostly limited to merchant ships (halfling ones especially) and the occasional teleport spell, although some gnomes have been drawing up plans for strange flying contraptions. As a result of this, other races are usually found only in the port towns, and are a relative rarity anywhere else. Adventuring parties are the main exception to this, but even though they enjoy a higher proportion of non-residents they are still largely dominated by the resident race. Outsiders are treated with varying amounts of acceptance, pity, awe, revulsion, and wariness, depending on the town spirit’s attitude and the distance from the nearest port.
Since contact between the different races has been limited, there are less than a handful of half-elves. The orc race, if it indeed exists, has not been encountered by any of the other races, so there are no half-orcs whatsoever.
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