Pinehall was founded in the middle of the great turmoil of the Ninth Age. In IX.706 the dwarven explorer Hrunir Fastorth cleared the tunnels of the Black Mountains and began his foundation along their slopes. By IX.831 they were granted a colony stone from the Arinnfal.
Territorial struggles with the elvish kingdom of Iiriem where common as both dwarves and elves claimed overlordship of the Pinefall Forest. However, the elves could never breach the great defensive works at Pinehall and the dwarves were fair tradesmen even in victory, so as the elvish defeats mounted they relinquished the land. Of course, this set the stage for later dangers with the half-elves of Dorlan.
In X.388 the March Wars began wherein the Dorls demanded trade supremacy to the Vales. The dwarves refused and old tensions surfaced as the half-elven Dorlish houses of Tyrolin agitated for all out war. Though Iiriem had long ago given up all claims, the Dorlish elves and half-elves felt that the dwarves of Pinehall snubbed their noses at elvish (and Dorlish) civilization.
The result was an all-out war which the (relatively) small stronghold of Pinehall could not sustain. Unlike its battles with the elves, the Dorls were able to marshal considerable forces, always outnumbering the dwarves on the field. Their sorceries were rendered useless or badly effective due to the dwarven temperament that allows them to shrug off magic — but the Dorls raised militia after militia and the wealthy Tyrolin houses poured money into mercenaries and materiel.
Eventually Pinehall was broken, sacked, and left empty, granting Dorlan control over the region which is now known as the Dorlish March.