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The village (as it appears in "Demon Stone") is a sprawling elven tree settlement. It has many magical enchantments through out that utilize the trees and roots as bridges and gates. A large inter-planar portal is located within the village as well as several magical "safe houses" the elves use in time of crisis.
The village was decimated when a githyanki general used the town's portal to begin bringing her army through. The general, Cireka, was stopped by a trio of adventurers, Rhannek, Illius and Zhai. Shortly thereafter, the slaad lord, Ygorl, teleported in with his slaad army. The githyanki and slaad forces laid waste to the village and slaughtered many of its inhabitants. If not for the efforts of the aforementioned adventurers, the town and its inhabitants might have been completely destroyed.
By the end of the story-line of "Demon Stone" the trio return to Cedarleaf to find the elves rebuilding their home.