Phandalin is a human village located northeast of Leilon, along the Triboar Trail. Hundreds of years ago it was a simple farming community, and began to prosper due to an agreement (Phandelver’s Pact) between various clans of dwarves, gnomes and humans to work together in the nearby mine of Wave Echo Cave.
Disaster struck, when orcs who had destroyed all game in their realm turned on the human settlements in the area, raiding them for food. Phandalin was one of these settlements, and in 951 DR (500 years ago) it was overrun and then abandoned.
Sometime in the early 1400s, settlers from Neverwinter and Waterdeep began resettling the ruins. Phandalin became a frontier settlement of farmers and prospectors looking for wealth in the Sword Mountains. It has no functioning government, however, the townsfolk annually elect a townsmaster. The townsmaster serves as a judge and mediator, and also keeps the records that need to be kept.