Like many a fantasy world before it, the Sleeping Dragon is an analogue of our own Europe. I could give some kind of academic style answer to that, involving much talk of metaphor and historic analogue, but the truth is that since the Sleeping Dragon has elements of a comic fantasy novel, one in which I make jokes about standard fantasy settings, it made sense to have a standard fantasy setting.
At the heard of the setting is the Empire, which is what our Europe’s Holy Roman Empire (a.k.a. Germany) might have become had Russia not existed. (In the world of Sleeping Dragon, there was no equivalent of Russia for the very good reason that the territory where it would have existed was instead home to orcs, beastman, and other assorted barriers to human civilisation).
Map produced by Jacob Rodgers
Once the Empire occupied only the territory between the Middle Sea and the World’s End Mountains. But after the development of ranged weapons firing bolts of pure mana, its territory expanded rapidly; within a century it stretched more than a third of the way round the world, to the borders of the Empire of the Sun.
To the south of the Empire are the Border Principalities, a patchwork area of notionally sovereign princedoms, some not much larger than the metaphorical postage stamp. Beyond that is merely burning desert, home to hardy nomads and scattered cities.
To the north lies ice, and warriors famed in equal measures for their resourcefulness and savagery.
Around the Middle Sea, which is this world’s ancient cradle of civilisation, lie other human realms, sometimes enemies of the Empire, often rivals, but still bound by common bonds of species and culture.
Dotted across the lands of man are other species: in the forests one often finds halflings; in the canyons and caverns of the World’s End mountains one finds dwarves. Once, relations between these different species were difficult, but now legally protected rights against discrimination and a commitment to multiculturalism ensure that all three species can live and work together peacefully for the common good.
And finally, across the Western Ocean lies the lands of the Elves. Once they lived in the lands that now form the realms of humanity; indeed as a species they predate humans. But humanity’s arrival in this realm displeased them; the energy humans threw into their so short lives changed the world in ways they found unacceptable. After several millennia of increasingly uncomfortable coexistence, the elves built a fleet of wonderful ships and set sail for the then empty lands that lay across the Western Ocean. There they dwell still, locked in a relationship with the lands of humanity that is not war, but not quite peace either.
 And yeah, that is a sort of Japan / China mishmash, and yeah I get that when fantasy settings do that, it rides roughshod over huge cultural, ethnic, religious, historical, and linguistic differences in a manner that is a best, Western-centric, and at worst, quite dodgy. But like I said, I deliberately wanted to start with a very typical, standard fantasy setting – and then twist.
 Strictly speaking, if I was really wanting to get the standard fantasy feel I’d say “race” rather than “species”. But having thought quite a bit about this, I realised that there is a fundamental difference between race and species. When we talk about race in the context of Homo sapiens (e.g. black people and white people), we are referencing something that is a social concept, and not a biological one. If you ask a biologist about “race”, they will tell you you need to go talk to a sociologist, because race is a social construct, and a bullshit one at that. But if you are say talking about the differences between Chimpanzees and Gorillas (or between Halflings and Dwarves), you’re now talking about the difference between two species, and those are real, genuine, biological differences. In the world of Sleeping Dragon people might once have used the word “race” to describe Humans, Elves, Dwarves and so on. But that would now be regarded as an old-fashioned, and perhaps even offensive, term. Instead they now say “species”, and use the phrase speciesism to describe species based discrimination.