Kiraniir is a border trading city of the elven kingdom of Dyrian. Established a century ago after a territory war known as the Dyrian-Altorian Trade War, Altorian being the neighboring human kingdom, the elves that had settle the area were caught between lines of fire numerous times. A truce was called, with Dyrian having just enough ground to claim a main trading crossroads at the border. Kiraniir was established with a race restriction; only elves may reside within the city. All other races must go through a lengthy process to obtain papers allowing for very limited travel within the city, usually limited to the marketplace and lower end accommodations. The city is connected to a shanty town called the Hole. The Hole is a racially diverse slum, both a part and separate of Kiraniir.
Any and all trade passing through the city is inspected, anything not passing code is either diverted to trade in the Hole or else turned away. Even simple travelers are not permitted passage without proper authorization, and are often forced to circumvent the city entirely.
The negative treatment of non-elves in not condoned by the Dyrian kingdom. The chaotic nature of the elves, however, as well as the admittedly lucrative trade that passes through, keeps the ruling council from making any overt changes to the town’s political structure.