A General History of the Halfling Race (CBGH)

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The myth of Littleman is repeated in virtually all halfling cultures of the mortal realms. However, the details of the story differ with every teller. In some versions of the tale, Yondalla creates Littleman out of essences she has stolen from the humans, gnomes, dwarves, and elves. In others, she said to have created halflings long before Littleman's time but then left them alone for an age to see how they'd turn out, like a farmer who plants seeds and then leaves them be until the young plants have sprouted. Others give no explanation of how halflings came into the world but simply start with Yondalla's meeting with Littleman.
All versions agree, however, that before recorded history began, halflings were a shy and fugitive people living as hunter-gatherers on the edges of civilization, hiding in isolated burrows from the humanoids and monsters that preyed upon them. The civilized races—elves, humans, dwarves, and gnomes—took little if any notice of them, while to the humanoids they were merely tasty, if elusive, meals. Then, for reasons which these races have never fully understood, the small folk suddenly came out of hiding, gathered together, and created small agricultural settlements for themselves across the face of the known worlds (the halflings themselves attribute the impetus to their mythical cultural hero, Littleman, and the goddess Yondalla). At any rate, it is clear that halflings arrived on the scene after humans and well behind the longer-lived dwarves, elves, and gnomes. The halflings seem to have made a point of not competing with the brawnier neighbors, instead selecting regions of lowland or dense thicket which they industriously drained and cleared, forming the pastoral shires inherited by their descendants.
Halfling societies have developed among most of the lands that have seen significant human settlement. Sometimes the small folk live among the humans, sharing their cities (though many will be gathered in a well-defined "Halfling Quarter") or farming beside their larger cousins. More often, however, halflings will live in small enclaves on the fringes of human realms. As a rule, halflings do not display the urge to expand their frontiers that so characterizes humanity; they are on the whole an easy-going and unambitious people. Once every dozen generations or so some restless halfling will gather a group of like-minded souls and forge into wilderness to clear new lands, but like their ancestors they will avoid areas already inhabited by others (whether human, demihuman, or humanoid). There is no record of halflings ever invading an area for the purpose of driving its inhabitants out and settling there themselves, although they are adept at mingling with whatever inhabitants they find already there.
Halflings strive to form the most neighborly of societies wherever they live. The race has a gift for getting along with dwarves, elves, humans, and gnomes in all climes and environments. Lack of prejudice is a noted halfling characteristic—one which allows them to welcome all types of strangers into their communities and to mingle comfortably in the cities and towns of larger races. Typically, halflings will cooperate with their neighbors for the defense of a larger area. Thus they gain an alliance with larger troops, and the ally welcomes companies of superb missile troops.