One of the most enduring legends about the Sindarin (elves) and the Shava Forest is that of Alarienel, the "lost city of King Daelda". Sindarin, Khuzan, and human legends all refer to it's existence, although every tale is vague on details such as appearance and location. Sindarin and Khuzdul legends are stragely coy on the subject of what became of the city; neither race seems eager to discuss the matter.
Although the ambiguity of the Alarienel myth casts doubt on whether it even exited, a few clues do exist. It is almost certain that it was built prior to the arrival of the Khuzdul on Harn. Dwarven tales speak of the "ancient halls of the elven King", and since both Ulfshafen and Elshavel were built with Khuzan aid, they are probably not the places being referred to as "ancient".
It is virtually certain that Alarienel was located in soutern Harn, most likely in or near the Shava Forest. This assumption is based on the fact that the Sindarin population has always been centered in that area. Attempts by human adventurers to find it have met with no success. The treasure maps that have occasionally turned up showing Alarienel's location have been frauds.
Some people believe that Alarienel was Pesino. While this possibility cannot be entirely discounted, it seems somewhat unlikely. Most of Pesino was not built by the Sindarin, and there is little to suggest that it was ever called "King Daelda's city".
There are hints in the legends that Alarienel was destroyed by a natural disaster. This theory gained some support from the report of the survivors of a shipwreck in the Gulf of Chakro in 631. They claimed to have seen the ruins of a great city beneath the waters of Shevia Cove on the coast of Evael. The fact that an expedition five years later found nothing has not dampened the rumor.
There are two other interesting theories about Alarienel. The first is that it existed (exists?) in Faya on Yashain and can be reached by one of the Taur-im-Aina in the Shava Forest. The second is that Alarienel is not a physical place at all, but rather a state of mind that the Sindarin of the old blood could achieve. For obvious reasons, proof of these theories would be extremely difficult to obtain.