Ruins of the Old Empire
The true dwarfs are the duergar but their the lives and minds are moot to most people. By far the majority of interactions with dwarfs are with the New Dwarfs, the mediating dwarfs who were apparently developed by their older brethren to be more like humans and able to negotiate with them. During the Old Empire, they served as the interface between Ilmand and Deurrack; typically, after the fall of the Old Empire, when the red and black dwarfs felt secure again, the new dwarfs were simply cut loose—left to live or die as they would in the outside world. They were no longer welcome to even the marginal part in true dwarf society they had had before.
In the centuries since the fall of Ilmand the new dwarfs have carved themselves a place in the world, to the point that one can assume a reference to a “dwarf” refers to one of them. It’s the original dwarfs who have their names qualified; they’re now more usually referred to as duergar.
The new dwarfs live in small communities in the hills and mountains, largely based on human knowledge (for the duergar hoarded their own techniques and didn’t share them with the new breed before expelling them), or as individuals in human settlements. Many know a dwarfish smith, jeweller, or guard.
The new dwarfs sometimes do take on their old role, acting as mediators for groups trying to claim ancient rights when crossing mountain passes that red and black dwarfs have encroached upon despite the ancient treaties.