Ched Nasad was founded by exiles from Menzoberranzan after a divisive war
between house nasadra and House S'sril of Menzoberranzan. A truce was
brokered by House Baenre that suggested that House Nasadra should found a
new city devoted to Lloth. The Spider Queen herself appeared in avatar form
and blessed the wisdom of House Baenre; then decreed the laws of the new
city and an everlasting pact of friendship between the two cities. The Drow
wandered for decades before the avatar of Lloth led them to the grotto where
the city was built.