The village of coven was originally built by human settlers who were farmers or lumberjacks. Through the years the pioneers got richer and richer because of the tradings with the gnomes nearby. Somewhere in the forest near the village they had built a beautiful chapel dedicated to the goddess Chauntea the patroness of the farmers.
So wealthy was the village, that a very rich man called Lutraga married the mayors daughter and she bore him three sons and one daughter. It was Lutragas wish, that his children would continue his work and gather even more riches. But his first born son was drawn into an evil circle of mages and studied the arts of black arcane. So powerful he got, that he managed to summon minor demons to the prime material plane and ordered the creatures to kill his family. The fiends managed to slay all except for the youngest brother who managed to hide in the temple of Chauntea. The fiends fear for having not completed their quest was so great that they lied about the escape to the blackmage. Satisfied, that the dirty work was done the mage set down and continued to study the magic of lower planes portals.
The message of the cruelty of the new village chief reached the gnomes and they stopped trading with Coven. That was 20 years before our time recording.
Today the path to the village is overgrown and weary, so there are still travelers who visit the settlement from time to time and whisper about the old story.