The Alliance gathered all the dwarves and the halflings of the Barony of Bloodstone, later joined also by the centaurs. The alliance was only a defensive one but used brilliant tactics, thanks also to capable tacticians like Gailan, Fredegast, and Valon.
The Alliance was established in 1357 DR by the halflings and the dwarves of Bloodstone, who had had a strong bond from a long time before humans arrived in the area. They organized themselves into an army in order to protect themselves from the army of Zhengyi. Later, the halflings brought the centaurs into the alliance. The alliance remained active after Zhengyi was defeated and in 1359 DR the dwarves offered for the deep gnome King Ruggedo to join the alliance.