The main settlement of elves is the Slyvanian Nation within the Slyvanian Forest. Here the elves live within the forest, but in some ways they live as the neighboring humans. A powerful nation to be sure, but one fraught with class warfare and recently defeated by their dwarven rivals.
Another culture of elves lives within the Circle Forest on Hughijen. Here they live completely at peace with nature, led by their druids and following the ways of their magic. These elves long ago fled the Slyvanian Forest in order to return to the roots of their religion.
See: The Quest for Selu Mantatu