Ages ago, when the earth was still young, there lived a group of scholars consisting of men, elves, dwarves, demons, and all other races who studied the fundamentals of the universe. Through their studies, they came to understand that there was a common energy which also governed the cosmos, as did light and gravity. They found the races could learn to harness this energy and wield it. They became the Ancients of Magic.
The elves found the magic of the forest, the power of nature, discovering druidical magic. Demons found the energy pathways to unnatural magic, wizards released the energy of the elements, and the priests of all races discovered ways to channel power from the gods. As they perfected their art, they taught it to their races, and soon the use of magic became general across the lands of the world.