Estagund history follows a different path than those of Durpar and Var. The Gunders were conquered in 551 DR by Reinhar I, warchief of the Arkaiuns of Dambrath. Estagund regained its independence when Reinhar was slain by the Halruaan archmage Mycontil, though the country soon degenerated into a group of small independent city-states.

Skirmishes with Var, and between the city-states, continued for several centuries until a king once again united the country. King Bornial was a skilled ruler, and under him Estagund began to prosper. His descendants did not share his wisdom, and in 1053 DR, King Selkarin more than illustrated this. He had failed to conquer Durpar, and Veldorn resisted his challenges. An avowed misogynist, Selkarin turned his attentions to the matriarchy of Dambrath. He led a large fleet to attack Dambrath, taking extreme losses, including his own life. Selkarin died childless, so his brother Seltarir was crowned King. The new ruler faced a country with most of its fighting men gone, and an unforeseen problem: famine. The famine was caused by a blight that wiped out nearly all the year's crops in Estagund. This made him eager for a deal posed by the Durparian merchant Jeradeem, and in a legendary trade the entire country of Estagund was sold. Contrary to popular rumor, Seltarir did not trade away the country for 24 pearls. In actuality he received diamonds worth almost a million gold pieces. The sudden wealth gave him an instant seat on the Council of Merchants, so he retained a measure of rule in addition to his fortune. Chaka Seltarir is still the richest chaka in Estagund to this day. In the years that followed, the Gunders began rebuilding their lives under their new circumstance, and now they compete on equal footing with the merchants of Durpar and Var.

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