Led by Balli the Rash, the Naugrim established their capital in the caverns of Akhuzdah (Ahule), in the rim of the mountains on the southwestern side of the Great Vale. It was called Tumunamahal after Mahal (Aule) and consisted of a seven-tiered complex built along the lines of Khazad-dûm. Balli's craftsmen quickly realized that the site would serve as a superb delving for a capital. The area was, after all, not only blessed with countless ore-lodes, it was criss-crossed with dozens of subterranean rivers. Balli had little trouble convincing his Lord, King Druin the Younger, to move east from the hills of Burskadekdar and to relocate in the Walled Land. Tumunamahal filled a vast cavern complex, one which could be reached from but two entrances. One was a door in the Tower of Druin the Younger, a huge representation of a Dwarven cairn located in a high canyon called Druins Cleft. This, the main gate, led to aspiral stair that descended through a shaft to the city below. The other entry opened out of the western side of the Mountains of the Wind (S. "Ered Gwaen;" Q, "Orosuli")* A tunnel forty-nine miles long connected this secret gate to the lower level of Ahule.

Only seven years after the founding of Tumunamahal, a second Dwarven tribe came to Ruuriik. They arrived in hope of settling in the northern pan of the Walled Land, for their Lord, the aged Malin North-king, had proposed that his daughter Bis might marry King Druin. Excited at the prospect of wedding the talented, brilliant, and beautiful Bis, Druin quickly granted Malin a fief covering nearly half of Ruuriik. Malin swore fealty to his host in return for the grant, and his Folk received all the land north of the Faliodukum. By S.A. 714 the Line of Malin held sway above the swift-moving stream that divides Walled Land.

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