Bloodstone Village was the second largest settlement in Bloodstone Pass, the only real accessible link between the lands of Vaasa and Damara. It was within the Barony of Bloodstone before 1357 DR, but the baron of the time, Baron Tranth, had little power over the dominion. In 1359 DR, it became the home of the King of Damara, Gareth Dragonsbane.
Before 1357 DR, Bloodstone Village was an important trade route. However, when a dragon turtle was slain in the seas to the south that terrorized shipping, a trade route by sea was opened in the Sea of Fallen Stars. The land trade route that ran through Bloodstone Village was less frequented and the village fell on hard times.
During this time, the Bloodstone Pass became cut off from the rest of the Kingdom of Damara due to the war with Vaasa to the north. Many settlements within the area were reduced to anarachy. In this anarchy came the Citadel of Assassins and their hold on the village. Bloodstone Village was forced to pay an annual tribute (two tendays after the annual harvest) in food, money, and slaves.