The Lacao Confederacy is a region of mountains and swamps ruled by the Dragon Lords. Few who venture in, even as diplomats, return. The Lacao Confederacy's Dragon Lords oversee their domain from a hidden council chamber in the Logurund Mountains. As dragons usually are, these Lords are protective of their domain and no outsider is allowed to see the council chambers. Those who have never returned wandered too close to the entrance. The Dragons perceived this as a threat.

Due to dragons' inherent anti-social nature, it is a wonder such a kingdom could be formed. The Dragon Lords claim the entirety of the Logurund Mountains and the land to the edge of the Hidden Forest, as well as the volcanic Isle of Flame. The Dwarves of Vilgard carefully watch this border since the Lizard Men of the marshes have little sense of borders (at least when they feel like it).

The Dragon Lords are very careful regarding the population of their domain. Only reptilian races live within the Domain of Dragons, especially Lizard Mages, Lizard Men, and Gromek. The Dragon Lords represent a half dozen of the species, each with their own domain within the Confederacy. Each Lord is presently satisfied with their territory and civil war has not erupted in centuries. There are rumblings in the Council, however, that some are becoming restless.