The treaty, though its terms are very unfavorable to the Empire, was initiated by Emperor Titus Mede II and agreed to by the Aldmeri Dominion due largely to the outcome of the Battle of the Red Ring in 4E 175, in which the Aldmeri army in Cyrodiil was completely destroyed by the Imperial army under Titus II. Among its terms were the outlawing of the worship of Talos, disbandment of the Blades, and the right for the Thalmor to move throughout Skyrim after the Empire didn't enforce the White-Gold Concordat during the Markarth Incident, to hunt down both worshipers of Talos and any remaining Blades in the province. The treaty was the only means to end the conflict for the Empire and heavily favors the Aldmeri Dominion.

The events of this occurred after the Oblivion Crisis (the events of The Elder Scrolls IV: Oblivion) and before those of The Elder Scrolls V: Skyrim. Although the exact causes of the conflict are not specified, the Elven Supremacist government, the Thalmor, as well as a few quotes throughout Skyrim suggest the Elves were the aggressors. The Great War was fought between the Third Aldmeri Dominion and the Third Empire.

White gold tower in skyrim