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The Palancar Valley was a valley in northern Alagaësia next to the Spine. It was named after King Palancar, who used to live there before the Fall. The Igualda Falls were located at the valley's northern end and the Anora River flowed from the falls southward through the valley. Nost Creek was also found here. Carvahall and Therinsford were the only villages in the region at the time of the Rider War.
The villages of Carvahall and Therinsford were founded when the first few humans and their King, Palancar landed in Alagaësia. They settled in the Palancar valley because it was one of the few defendable locations that had not been claimed by the dwarves or elves. Palancar invaded the Riders to the south three times in the Palancar Crisis, to no avail. Eventually his nobles signed a treaty with the Riders and overthrew their king. Peace was restored and it is said that royal blood still flows in Palancar Valley.