In the 10th century DR, clans of dwarves and gnomes made a pact that would later be known as Phandelver’s Pact. The pact allowed both of the races to share the riches within the mine of Wave Echo Cave. Many gained from this agreement, including the nearby human settlement of Phandalin. When it was discovered that the cavern had wondrous magical properties, spellcasters from Phandalin allied themselves with the dwarves and gnomes to harness this magical power and use it to its fullest potential. They bound the magic into a forge they called the Forge of Spells, where they crafted magical weapons and other items.