Elves were the dominant race of Katur, before it became known as Katur. Due to an orc invasion, their royal family was slaughtered and their kingdom stolen, which lead to elves losing a lot of their power. They still exist in great numbers in Katur, but they no longer rule the kingdom. Elves despise orcs and regard dwarves as friendly rivals, and the attitudes are mutual in both cases.
You can find out more about elves here.