Dwarves prefer to live in environments that enable mining and fortification, and are commonly found among mountains or hills. In the mountains all but the external farms, fields and defense structures are hidden below the surface, while in other environments they construct stone buildings complemented with complex cellar systems.

Dwarves are not renowned for their farming skills, but they have learned to cultivate their crops in unfertile conditions. In the mountains much of the agriculture is kept below the surface, mainly revolving around pig farms and mushroom fields. Hill dwarves raise goats and sheep, which provide them with milk and wool.

Dwarves generally do not settle along the coast because of their aversion towards open water.