It was built around Drakonian ruins from long ago, presumably during the days of the Drakonian Empire. These ruins can be seen around the area, and often attract tourism. The town was built by Vigel Varalys during the 6th Era, 499 BC after the devastating Dragon Wars which had wiped the glorious city of Drakonia and its empire off the map entirely. With nowhere else to go, Vigel Varalys established a small group which commenced the construction of Valraenos, built in what he called "The shadow of the dragon's fury" -- likely referencing the large cloud of smoke that persisted for months in the south after Drakonia's final siege.