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Crooked Cove was first constructed by Hellknights of the Order of the Gate in 4599 AR, as a base of operations for the construction of Citadel Enferac. It was founded as a mining and lumber town, and when the Hellknights left soon after founding the town, it continued to sustain itself from the revenue from these industries.

After the Chelish Civil WarHouse Thrune appointed Ioseff Xarwin as Paracount of the region, with Crooked Cove as his seat. He constructed Xarwin Manor as his residence, as well as overseeing the creation of a church of Asmodeus and various other amenities to support the town's economy, but other than that the townsfolk saw little change to their day-to-day lives.1