Before the Rebellion
The eastern half of the Old Kingdom was somewhat inclined to a more eccentric populace. Sharing a border with the Elves encouraged magical development, leading to the founding of the Arcane Academy, which admitted the occasional half-elf.
Trade between the Old Kingdom and the Little Islands made for a colorful exchange of culture, most apparent on the East Coast.
Approximately ten years ago (from the start of the game), Caile rallied enough supporters, some in high places, to stage a rebellion against King Emerson. Caile and his followers made off with half the kingdom, but not before incurring serious casualties. Most of the High Officials were persecuted before they could flee to the east. This resulted in the disbanding of the Council of Three, and gave way to a rise in anti-magic sentiment in the west.
As his last act of control over the East, King Emerson ordered the closing of the Arcane Academy. Its students and teachers scattered. During the chaos, magic-users fled to the East to escape persecution.
After the Rebellion
Presently, the East Kingdom has no official organized defense. While King Emerson has the Royal Guard at his disposal, they are challenged by the volatile magic of the East. King Caile is working to create a more stable state out of the chaos, but finds it difficult to control at times. It is a relatively dangerous place.