The Malvernian Imperium broke off from the Faloran Imperium after its last emperor died, turning the Halim peninsula and its sister island Jovinium into the Holy Dominion of Archanicus. As a result of the last emperor's death, tensions were high in the newly founded Dominion. Many believed that submitting to the will of the Archons was not in the best interests of humanity - and one Archon actually agreed with humanity.
This Archon was the Archon of Malvern. Records of his true motivations do not remain, at least not for the public eye, but what is known is that this Archon secured Malvern's independence from the Dominion. The shock of this event helped bring an end to the civil war in the Dominion.
Malvern maintained its independence, the Archon split himself into lesser spirits, and then with the formation of a Tribunal, a new emperor was elected. The children of the original Archon went on to rule as equals alongside the people of Malvern, helping power their industry and lifestyles with their magic, and preserving Malvern from foreign aggression.
As the 'Third Faloran Imperium', the Malvernians uphold many Faloran traditions, such as slavery. They consider their neighbouring Faloran Republic to be a threat to their lifestyle, because the Republicans hate all spirits, including the lesser Archons of Malvern.