Rise of the Runelords
Elves are a relatively rare sight in the human-dominated areas of Varisia, preferring to dwell in the wilds or in their own communities within the Mierani Forest. The elven village of Crying Leaf near the edge of the great forest is the largest known settlement, but it is believed that there are many more within its boundaries.
Although the elves are extremely protective of the forest, they maintain trade relations with their Chelish neighbors. Riddleport, Magnimar, and Korvosa all host permanent elven embassies. The Mierani elves also send frequent emissaries to the dwarven city of Janderhoff, but don’t maintain a permanent embassy there, by mutual agreement.
Elves in Varisia tend to have a reputation as standoffish and snooty, but their rarity also makes them exotic and attractive. This may explain the prevalence of half-elf bastards in cities with elven embassies.