The Alliance began when Solaris, at the behest of Vkandis, contacted Alberich to suggest a truce between Karse and Valdemar. As a show of good will and to further relations, Talia journeyed to Sunhame to receive ordination as a Sunpriest, the first of the reinstituted order of white-robes.
Shortly after, Elspeth returned from her quest for mage-training, accompanied by Darkwind, Treyvan, Hydona, Firesong and Rris, all of whom took up the posts of Envoys to the Alliance. They were joined shortly after in Haven by Querna of the Shin'a'in and eventually, Ulrich and Karal out of Karse. Prince Daren represented his brother King Faramentha of Rethwellan and Quenten stood for the various mage schools. Much later, Hardorn was added to the Alliance with Sejanes representing his former protege, King Tremane.
The Alliance has served many purposes, first to bring peace to Valdemar and Karse, ending centuries of warfare. Next, it was to bring magic back to Valdemar after Vanyel took down the Web-Spell that prevented mages from working within the borders. As it continued to transform, its major purpose became finding a way to deal with the Mage Storms. Now it serves to keep the partners united in the face of possible aggression from the Eastern Empire.
The Grand Council of the Alliance meets in their own chamber in the Royal Palace at Haven. It used to serve as a lesser audience chamber.