It sat in the far north-eastern promontory of Khul between two massive rocky outcrops. The coastline of that part of Khul is mountainous with little in the way of inlets or bays were a ship can harbour in safety, save for a tiny sound at the head of which Faleha was founded. Behind Faleha were fertile rolling hills sheltered in a V-shape between mountains running north and west from where Faleha stood. Faleha became a fair and prosperous trading city, with rich resources from the lands behind it, and ore and mineral from the mountains also. Its position also made it a welcome stopping point for sailors. To the south and west Arion was founded on the remains of an Irritarian town and this grew as well, benefiting from trade with Faleha. Soon, towns around the whole of the Gulf of Arion traded with this great city.
However, by c.1600OT, Arachnos had made himself master of all its revenue. Unbeknownst to Falehan nobility, Arachnos used the revenue to pay his servants, soldiers and minions. He had built an army in the surrounding mountains and as a servant of Chaos had intended to use this army to take over Faleha and then spread outward through north-east Khul and beyond. Faleha found out too late and was destroyed by the army. However, messengers had already gone out to the cities surrounding the gulf and plans had been made for war. A great war ensued, destroying many of the cities surrounding the gulf, and even to this day the cities of the southern gulf have not returned. Arachnos was defeated, but fled to the west and was thought to have perished.