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Dragons fell into a slumber.
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Ancient Race died off - The first Undead were created as a result of the Ancient Race's tampering with life.
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Other races began populating the world
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The Wizard Council was created.
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Merfolk leave the other races to their own devices on account of the Wizard Council grasping for too much control over their waters.
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Dragons awaken from their slumber and begin wreaking havoc on the world. - Montague the Redgrave begins the dissolution of the Wizard Council and his plans to take over our earth.
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Dragons, Unicorns, and Merfolk came to inhabit the land.