Some say the Last Great Time War started when the Fourth Doctor went to Skaro, during the time which the Kaleds were fighting the Thals on their home planet. Due to nuclear warfare, both sides were mutated horribly. This eventually caused the Thals to leave the planet, in despair, but most of the Kaleds were mutated and disfigured. Their lead scientist, Davros, decided to keep his race like this, because he saw no other method, but the Kaled mutants had zero chance of surviving. Davros put them in heavily armored vehicles, and thus Davros created the Daleks. He also gave them a weapon: the exterminator gun stick, capable of frying internal body cells, tissue, and organs. He also took away all but one of their emotions:hatred. This was to shield the Daleks from any emotional attacks, and to never show mercy. Davros wanted "his children" to conquer the universe, but before that happened, his own creations turned on him and exterminated him. Ever since, they have only resurrected him only in time of need. Another time, there was a Dalek civil war. A faction followed Davros, while the other followed the Supreme Dalek. The war ended after the two united due to a mutual hatred of the Doctor.
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The Doctor's people, the Time Lords, were very old and wise. They were the first race to discover the secret of time travel--by collapsing a star on itself to fuel time travel. After their devastating war with the Great Vampires, they swore never to interfere with the rest of the universe, only to observe. Even so, they foresaw the Daleks conquering the rest of the universe. This was why they sent the Fourth Doctor to Skaro to try to prevent their creation.
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The Doctor was successful, and prevented the Dalek's creation for a thousand years. But he disobeyed orders to destroy the original Dalek embryo;he did not want to commit genocide against this race. After the Daleks discovered that the Time Lords tried to prevent their creation, they hated each other ever since. A war between these two powerful races was inevitable.
