Topic summary
Erebor

Extracted from the Wikipedia article Lonely Mountain.
Origins
Erebor becomes the home of the Folk of Durin, a clan of Dwarves known as the Longbeards, after they are driven from their ancestral home of Khazad-dûm. In the latter days of the Third Age, this Kingdom under the Mountain holds one of the largest dwarvish treasure hoards in Middle-earth. Dale, a town of Men built between the two southern spurs of Erebor, grew in harmony with the dwarves. The Kingdom under the Mountain is founded by Thráin I the Old, who had discovered the Arkenstone there. His son, Thorin I, leaves the mountain with much of the Folk of Durin to live in the Ered Mithrin (Grey Mountains) on account of the great riches to be found in that range. After dragons plunder their hoards, the Longbeards, led now by Thrór, a descendant of Thorin, return to Erebor to take up the title King under the Mountain. Under Thrór's reign, Erebor becomes a great stronghold where the dwarves are numerous and prosperous.