Indoril Nerevar was the founder of House Indoril in Morrowind. He is regarded as the premiere saint of the Dunmer people. Indoril Nerevar was the owner of the Dwemer ring known as Moon-and-Star. This powerful artifact was forged by the sorcerer-priest Kagrenac and blessed by Daedric goddess Azura, giving Nerevar increased charisma. It was also used to prove his identity, as any other individual who wore the ring was killed instantly.
Nerevar forged an alliance with Dumac Dwarfking, bringing together the clans of the Chimer and the Dwemer in 1E 401 to expel Nord invaders from the province of Skyrim. They succeeded in pushing the Nords out of mainland Morrowind by 1E 416. This alliance later yielded the First Council, creating a peace that lasted for some years and allowed both cultures to flourish for a time. However, unbeknownst to Dumac, Kagrenac had discovered part of the buried body of the god Lorkhan and was working on developing tools to allow him to access that power. When Nerevar learned of this, he led the Chimer to war against the Dwemer, culminating in the Dwemer defeat at the Battle of Red Mountain. After their defeat, Nerevar and his close friend Voryn Dagoth (later known as Dagoth Ur) discovered the Heart of Lorkhan and the tools developed by Kagrenac. Nerevar left Dagoth Ur to guard these, and conferred with his advisors, who agreed to never use the tools.
At this point, the details surrounding Nerevar's death become unclear. The official accounts of the Tribunal state that Nerevar went back to Dagoth Ur who, driven mad by his proximity to the Heart, inflicted wounds on Nerevar sufficient to eventually kill him. In this version, Nerevar's friends Almalexia, Sotha Sil, and Vivec were unable to fully defeat Dagoth Ur, but managed to escape with several powerful Dwemer artifacts. However, Ashlander texts (as well as those of some dissidents within the Tribunal) state that Nerevar was not killed in combat, but instead was assassinated by his allies, who conspired to seize the power of the Heart of Lorkhan for themselves.
After Nerevar's death, his former allies accessed the Heart of Lorkhan and gained nearly immortal powers. In retribution, it is said that Azura turned the skin of the Chimer gray and their eyes red, and further proclaimed that Nerevar would someday be reborn to set things right. These new god-kings eventually took control of Morrowind, ruling under the name the Tribunal. A few pockets of tribes were left worshipping the old Daedric gods, but much of Morrowind was converted to worship of the Tribunal. However, the legend of the rebirth of Nerevar spanwed a cult of the Nerevarine that the Tribunal was was never able to stamp out. Ironically, the remaining members of House Indoril formed the backbone of the Ordinators, a military order that was particularly vicious in responding to this form of heresy. From time to time, individuals arose to partially fulfill the prophecy, but until the events of the Elder Scrolls III: Morrowind, none was able to complete all the required tests.