[MENTION=25619]haakon1[/MENTION], just to be clear, my post was not a comment on your first post explaining Cauldron. I was just making a general comment.
Racism like the Cauldron plantations can work great in a game. But in the games I have experienced, racism happens in the background unless a PC happens to be of a particular race. Dwarves don't like elves? No problem until the party stops by a dwarven outpost for supplies. Now the elf needs to use an intermediary because the fletcher won't sell to a poncy elf. Which can be great, once or twice. What I've seen happen is every dwarf the party comes across treats the elf character like crap and there never seems to be a justification.
Having regional groups subjugate other regional groups seems like a great way to have this work in a game. Like you said, it challenges the moral characters. But, has this come up in your games? This seems like it could derail a game if certain characters feel they need to free the slaves.
Thanks for clarifying.
To me, the main problem with what you describe -- an "all dwarves hates elves and refuse to deal with them" setting is that it's stupid and boring (repetitive). If MOST dwarves didn't like elves, and some were like you describe, while others are tolerant and others trying to exploit the situation (selling to elves at inflated prices in secret rendezvous the dwarf guild doesn't know about), it might be interesting. Or still annoying.

Thanks for asking about my campaign. The truth is, this is a campaign that meets infrequently, and we're on hiatus for two of the players having babies (unrelated babies, same time almost!). They came to Cauldron in this campaign from a gate from the "Forge of Fury" adventure.
I had the duergar actively operating the Forge with the slaves kidnapped from Cauldron. (The official set up for the first adventure in the Shackled City Adventure Path, "Life's Bazaar" is that someone is kidnapping people from Cauldron, and it turns out to be a half-duergar who is selling them as slaves into the Underdark.)
The duergar are refugees who were driven from their Underdark homes by the Kingdom of the Ghouls. After the PC's slaughtered them in the Forge of Fury and barely defeated them in the Malachite Fortress (abandoned dwarven fortress/Underdark entrance under Cauldron, connected to the Forge by a gate), the surviving duergar leader tried to make a deal with the PC's to give up their slaves if the PC's would let them go. The PC's LG cleric was interested (worried about this Ghoul threat of which they spoke!), but the PC's CN rogue would have none of it, and started a fight, which the PC's won.
Eventually, the PC's defeated the duergar and their allies, and freed all the kidnapping victims who were still alive and not sold off to Drow, etc., before the PC's arrived.
One of the kidnapping victims freed is a newly joining player's PC. He got really into the setting. His character, a Fighter, was a Cauldron City Guard. He was fired for being an alcoholic (cured by cold turkey as a prisoner) and punching the head of the Guard for insulting his father, the former head of the Guard. Dad was killed in the line of duty, when he tried to negotiate an end to a slave revolt on a plantation owned by the nouveau riche parents of a rival NPC, in a party of rival NPC's.
Sounds like it'll be "interesting", but we haven't played since they finally made it into the City, and went to the Temple of St. Cuthbert (who were trying to rescue the kidnapping victims).
Next session, I'll do roleplaying fun -- the Flood Festival and a ball where they can meet the bigwigs, invited as special guests for being heroes and reopening the economically important gate. Then they'll have to rush off to rescue a cleric outside the city . . . so after fun antebellum carefree life at a temperate altitude, they go into the steaming jungle and see a little of where all that wealth comes from.
BTW, my mom's side of the family is from Charleston, SC, where the Civil War started . . . I think I'm pulling in ideas from visiting historical plantations as a kid. Definitely made an impression, and not just for being hot.
