Daggerdale was a small town in the northern part of the lands of Shadow. It was a quiet place that was centrally located, serving as a trade hub in the north. The city once housed the temple of the Moonmaiden, Selune, but over time, the people of Daggerdale became less accepting of the Selunite precense, which was perceived as aggressive. Citizens removed Selune's temple and forced them to set up outside the city.

Shortly after, drow, and the Talosian Kiervalan Telkaror, a leader of the Torm army, took a portion of his loyal soldiers and stormed Daggerdale, razing it the ground and turning it into a wasteland of lost spirits and darkness.

Long after the fall of Daggerdale, Around 747SG, the archlich Nurval arrived, and rose to power.

It is said that Nurval is ancient, a necromancer archlich from epochs past who fell into a deep slumber after his plans for world domination were defeated by a band of heroes. Other rumors claim that he was, in fact, the first necromancer, the first to learn how to manipulate the energies of life and death with the power of the weave. Yet others believe that he is some hidden deity, a secret god from pantheons past whose power is endless, free of the fetters of faith that other gods must abide.

Regardless of the reason, the Daggerdale tragedy acted as a beacon, awakening him from whatever stasis held him. He began to send out his undead scouts, learning of the land and amassing a force to claim it as his own. Years later, the city would rise up almost overnight, as the undead minions did not require rest nor respite as they constructed Nurval's new bastion in the realms. The temple of Nilith was incorporated within, and given a measure of respect from the undead forces.

The forces of Nurval seemed content to strengthen their position and remain separate from the intrigues of the realms. Both living and undead co-existed within the city, all subservient to the will of Nurval. The living servants often undertook the lower duties, serving diligently in the hopes of being drawn into the ranks of the intelligent undead. All higher positions were filled by death knights, vampires, and other manners of higher undead creatures. One thing that all citizens shared was a devotion to their undead archlich master, the Necromancer Nurval. His pleasure is what drove every servant's actions. It was a devotion that bordered on religious fervor, and those who turned away from Nurval were often punished by faithful servants for their failure, and raised as mindless undead for the ranks of the army.

One day, just as quickly as he arrived, Nurval disappeared taking his faithful servants and army of undead with him. Rumors say he has since arrived in Graez, to join the never-ending battle that wages there between the living and the dead.

Now under the watch of the Nilithim, the city does not involve itself in the politics of the realms, although it does permit some trade and the patronage of its shops by travelers. Take care, however, for the massive necromantic rituals and spells in use throughout the city cause wellsprings of negative energy to flow, and can be dangerous to mortals.