In Central Aels, between the plains and the great river of Barlans, the cold desert of Iperto and the Holy/Damned Mountain of Hortann, extended the lands of the "Purple fields", know like that for a distinctive purple flower, or later known as Purpurian:
Before the Apparition of Humanity, or even the High Elf domination, these became the lands of the little ones:
In these old times, the larger inhabitants where the Dwarves of Gmonia, or gnomes, and there lived a kind of pigmy elf, which where called alternatively or fairies, nymphs, pixies, or simply elfs, and between the goblinoids, there were present the small green goblins, and maybe from these period appeared for first time the Ur dur, cave goblins, and the Fauns...
Of somewhat mysterious origin, lived there as well the "elves" -I don't know if there exist a distinction in English, but in Spanish there are "elves" and "elves"... and these second group we identify as Duendes... different from the Elfos-. These Duendes, were supposed to be maybe a mixed breed of Fairy and goblin, or Fairy and Gnome, or special kind of gnome: but they were distinctive, as they had -like elves- magic.
In general, Purpurian was told to be a magical land of the Fairies, being their magical inhabitants especially strong...
But this, and their geographical position, make things change, and badly, for them:
The Giants settled in the mountains of the North -Titanizk mountains- , and the Minotaurs in what will become Minocea.
Zuleis elves of the Prairies will migrate from the cold desert of Iperto, and then Silvan elves and sometimes invaded by drows, until the High Elves conformed a large empire called Malvor, and then the Dwarves of the Mines of Nortunk invaded... And after all of them, began the age of Invasions, and Kanovs and Humans penetrated in these lands, to settle down in them...
Purpurian, the human kingdom, finally rose, and the first war of the Power devastated these lands...
And due this, the little species of the Purple fields become more and more scarce, retreating to forests or mountains, to become almost myths, like the fairies and duendes, or irrelevant players in the region, like the dwarves of Gmonia...
Is weird the occasion where you draw something, and the taller character is a dwarf. XD
Edit 01.04.2017: Updated scan, added shadows and lights
(Granted, the Ur Dur would be the tallest if only standing erect, but even so, the Gmone is still one of the larger figures in the pic!)
One might speculate that the gmones were USED to being the tallest people in their world, but adopted the tall hat to compensate when they kept meeting taller outsiders from Purpuria? Or the caps were their 'crowns' to drive home to all the other Purpurian races how short they were!?
Perhaps, more likely, they were always aware that they were among the shortest of all dwarfs. "We MUST watch over and protect the Duende! They MIGHT be shorter dwarfs than we are!" LoL