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Hammerfell, however, was unwilling to accept the loss of so much territory and continued to fight, forcing Titus II to officially release Hammerfell from status as an Imperial province in order to maintain the treaty, but not before allowing most of the legionnaires stationed in Hammerfell to be declared 'invalid', thus allowing them to continue fighting. The Concordat's terms also included the cession by the Empire of a large portion of southern Hammerfell to the Aldmeri Dominion. The Empire initiated the treaty knowing that, despite a temporary reversal in fortunes, the Aldmeri were in a position to eventually overwhelm the Empire - the Imperial army had suffered the loss of three entire Legions during the war (one in the retreat from the Imperial City in the previous year and two more during the Battle of the Red Ring) in addition to the surviving portion having lost over half its men. The treaty, though its terms are very unfavorable to the Empire, was initiated by Emperor Titus Mede II and agreed to by the Aldmeri Dominion due largely to the outcome of the Battle of the Red Ring in 4E 175, in which the Aldmeri army in Cyrodiil was completely destroyed by the Imperial army under Titus II. The Concordat has caused a great deal of resentment in the Nordic population of Skyrim, who feel angered at the ban of Talos worship and dishonored at the Empire's signing of the treaty. Among its terms were the outlawing of the worship of Talos, disbandment of the Blades, and the right for the Thalmor to move throughout Skyrim after the Empire didn't enforce the White-Gold Concordat during the Markarth Incident, to hunt down both worshipers of this outlawed deity and any remaining Blades in the province. The treaty was the only means to end the conflict for the Empire and heavily favors the Aldmeri Dominion, who would have otherwise fought on and won against the Empire. The events of this occurred after the Oblivion Crisis (the events of Oblivion) and before those of Skyrim.

Although the exact cause(s) of the conflict aren't specified, the Elven Supremacist government, the Thalmor, as well as a few quotes throughout Skyrim suggest the Elves were the aggressors. The Great War was fought between the human-dominated Tamrielic Empire and the Third Aldmeri Dominion comprised primarily of Altmer of the Summerset Isles.