Erebor, the Lonely Mountain, was an old Dwarf colony which became important when the Dwarves had to give up their big city Khazad-Dum (Moria) due to the Balrog which appeared there. Erebor and its large caves inside became the new capital of the Dwarves of Durin's Folk and the Dwarves got rich again there. Another town called Dale, inhabited by Men, was build at the foot of the mountain. But in the year 2770 the big red-golden Dragon Smaug came from the Withered Heath in the north, destroyed the two towns and laid himself on a bed of gold in the treasure chamber in the heart of the mountain. There he laid until he got disturbed again 171 years later ...
