The dwarves arrived with the intention of taking over Fairyland and making it their own.
Fairies, however, have many types of weapons with which to defend their land.
At the sight of not only swords, but magic wands, unicorns, and dragons, the dwarves fled with one accord. Only a troll, and a pony whose rider had fallen in the panic, were not fast enough to escape. The troll sensibly surrended.
The riderless pony was reassured that it would come to no harm.
Cuddles the friend-of-fairies dragon wanted to breathe fire over the dwarves' tower, and burn it to the ground. But the fairies said no; instead they would use it as a playhouse for the children.
The troll - whose name was Edward - was willing to move the tower for the fairies. He was a nice troll really, who had been captured by the dwarves and forced to work for them. He hoped that his new capture by the fairies would actually turn out to be a better life for him. Nonetheless, the fairies watched him carefully, in case he pulled any tricks.
They needn't have worried. Edward was friendly and peaceable, and it was he who perfomed the official opening of the fairy children's playhouse.
And the dwarves? They haven't been seen again.
