Stonehills is a mining settlement located on the base of the eastern mountains in Hjaalmarch, located in the province of Skyrim. Stonehills is a mining operation that is orchestraded by the Court of Solitude and the City of Morthal.
Stonehills is located in the eastern mountains of Hjaalmarch which divides the Hold with the Pale in the east. The main attraction of Stonehills is the Rockwallow Mine, which contains pockets of Iron Ore. Near the town is the city of Morthal, located west along the road. The nearest settlements are the towns of Dunstad Grove and the city of Dawnstar.
During the Imperial Simulacrum from 3E 389 to 3E 399, Emperor Uriel Septim VII was imprisoned along with Talin Warhaft in the Deadlands by Jagar Tharn. Tharn planned for months to capture the throne, and he was able to achieve so in the span of ten years. Tharn had a powerful weapon called the Staff of Chaos, and he split it into nine pieces and scattered them across Tamriel, the staff was the only thing keeping Uriel Septim and Warhaft in Oblivion. A warrior escaped his clutches and traveled all corners of Tamriel to retrieve the missing pieces. The hero was known as the Eternal Champion, and he assembled the staff and defeated Jagar Tharn at the Imperial Palace. The Eternal Champion had at one point visited the town of Stonehills in their quest to recover the pieces.
During the Skyrim Civil War in 4E 201, Thane Bryling of Solitude had ownership of the Rockwallow Mine and established Stonehills to have production of Iron Ore underway. Stonehills was watched over by Sorli the Builder and her husband, Pactur, both of who have supervised this small community and the shipment of Iron to Solitude. Sorli was a stern believer of the Stormcloak Rebellion that operated out of Windhelm and believed that the current Jarl of Morthal, Idgrod Ravencrone was not fit to rule over the region.