The Faloran people originated far to the south of the current known world. When they discovered magic, that discovery was accompanied by a fanatical religion which saw them attempt to spread their Doctrine across the world. The Faloran peoples split up and migrated to spread their crusade in different directions.
Those that migrated north founded the city of Malvern. Malvern was, according to Faloran myth, the first great metropolis of the world. Whether true or not, Malvern has stood for roughly two-thousand years, and marked the capital of the first true Faloran Kingdom.
Eventually, the Falorans continued their migration, founding Falor and conquering the peninsula. At a great council held in Falor to discuss the enemies of the Faloran peoples, Radiance helped elect the Palaienid dynasty of Falor as Emperors, creating the First Faloran Empire. Malvern became second to Falor, and saw much of its propserity trickle north over the generations.
When Radiance overthrew the Palaienid to declare the Dominion, Malvern had not forgotten the oversight dealt to it. It declared independence, and a branch of the Palaienid was installed as a line of Empresses, backed by three Archons loyal to the dynasty.
Ever since, the Empire of Malvern has continued the traditions of the First Empire, including the practice of slavery. Though the number of true citizens is limited, the Malvernians maintain an extensive territory and have slowly continued to expand and regain their former glory.
With the death of the Arbiter and the destruction of the Triumvirate army of the Republic at Falor, Malvern realises that it is now the strongest known force in the world - and that the time may have finally come to restore the borders of the First Empire.