The Circle of Magicians

Magic has existed since before life. But as life came into existence, some learned to control the energies of the world. These people became the Circle of the Magicians. They were not bound by species or nationality, but rather unified in their pursuit of magical truths and the means to channel its power. The original circle included humans, fae, dwarves, spirits and even any beasts with an interest.
From this association of magic users, the branches of magic known to the modern residents of Four Skies were born: Enchanting, Potions, Elementalism and Energy Manipulation. The Circle of Magicians were masters of the forms and studied ways to combine the branches to achieve great things. Using their understanding and abilities to channel magic, they built the Realm of Four Skies. This period is often referred to as "The Construction." During this time, the Circle built empires and collected followers. But as they taught their magic to those outside the circle, they faced worsening threats. Some sought to use the magic for selfish means: to destroy enemies, to control others, or disrupt the balance of the realm.
Among the Circle, some were sympathetic to their deeds. Why learn to use magic if we couldn't benefit from it? Suddenly, race and nationalism became an important part of the turmoil of the Circle. Those who came from cultures valuing self-determination and free-will wanted to regulate the use of magic. Others who valued ambition and accomplishments thought that the regulations were censorship and detrimental to progress. Eventually, the two sides split, with those against regulation succeeding to another realm: the Realm of the Prosperous.
Those who remained had difficulties agreeing to what regulations should be put in place. They managed to agree to a common set of forbidden uses and forms, but not all were happy with the list, believing there was more to be protected. They eventually broke into the different regions, allowing them to make more strict regulations if they decided fit. Generally, the break divided the four races, although there were some exceptions. The most lenient of the regions are the Della, who evolved from the spirits intermingling with the remaining races. They have the most racial diversity in Four Skies. The strictest are the faeries, descendants of the fae, although closely followed by the humans.
The modern Realm of Four Skies abide by the Forbidden Magics agreed upon by their ancestors, but the Circle of Magicians has long since disappeared. Each region regulates itself, in magic and other politics. They hold varying levels of diplomacy with the other regions, but most regions are still rules by small councils that some argue resemble the original Circle.