Around 1363 DR, Xovliax claimed a section of the Melairbode as its lair but was soon possessed by the ghost of the Laird Besender Melairkyn. Somehow the possession became permanent and the personalities of the dwarf and of the deepspawn fused together.
So Xovliax started spawning dwarves in order to form a new dwarven community inside the dungeon, Murkstone. However, the spawned dwarves were a failure and often Xovliax sent them on suicide missions. Meanwhile, however, many dwarf outcasts and some duergar joined Murkstone.