The Al'Inari (literally "Of the People") Empire covers most of a large penisula continent known as Bela'Leuada (contracted form of "Under the gaze of Leuada"). It has stood for nearly one thousand years, a confederation of city-states ruled by Counicallors, each answering to the High Counicillor of Ai'Ilestia. The empire has traditionally been ruled by the El'Enari (gray elves), though the Tulari (high elves) & Sindari (wood elves) also have a strong voice, particularly in the eastern half of the empire.
The Il'Ythyrii (dark elves) have recently been cast out of the governing chambers of the empire because of the support their leaders gave to the Eridani uprising that ended with the "3 Nights of Fire" 50 years ago. The dark elves have since either fled to the Caliphate across the Sea of Storms or have retreated to their ancestral homes deep within the earth. The majority of their race worship Fynnyd over Am'Dro & Leuada, though a small handful of the younger generation, feeling betrayed by the gods of their forefathers, have turned to an Outland spider goddess.
Humanity is poor cousin at best in this land. In the eastern & southern cities of Edgewood & Bal'Ishtai humans are treated almost as equals, save that none are allowed heavy armor, blades over 18" in length, or access to evocation magics. In the western areas, humans have few rights at all. No human is allowed to set foot in Ai'Ilestia without either a badge of citizenship (often earned after spending most of their lives indoctrinated in the army) or an elven escort. Things are even worse in Evelinar (Councillor Balorei is notorious as a fanatical racist). Humans are kept in the slums of Morn Vale, well away from the pristine streets of his city, which are dutifully cleaned by a few hand picked humans who are tall and slender enough not offend His Lordship's keen senses and are kept as virtual slaves in the city's outskirts.
People from the Caliphate and Western Islands are an exception. The Empire still honors numerous old treaties with the Caliphate, and citizens in good standing, regardless of race, have almost full rights in the Empire (the same applies for elves in the Caliphate). As for the Western Islanders, while they are usually not treated much better than normal humans, are welcomed in Evelinar, as Balorei claims to be from those exotic lands himself, and welcomes opportunities to speak with civilized folk.