From The Legends of Krynn
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One dwarven sub-group that is considered both caste and race are the Aghar ("anguished"), known colloquially as "gully dwarves". These pathetic creatures are thought to be a cross-breed between dwarf and gnome, but they have inherited nothing but bad genes. Aghar are considered beneath even derro, and not true dwarves, but the Council of Thanes recognises them as a separate caste out of some dwarven filial loyalty. The Aghar, or Gully Dwarves, are considered by many to be the most repulsive of races on Krynn. Gully dwarves are the diminutive cousins of true dwarves, though they still have a seat on the Council of Thanes in Thorbardin. Their leader, the Highbulp, is the Aghar who is most accomplished at grovelling his way out of any given situation. Terrified of any threat, Gully Dwarves are exceptionally hard-headed and stupid (in the entire history of the three gully dwarf clans only Bupu - Raistlin Majere's charmed friend - and Raf - Tika Waylan Majere's helper at the Inn of the Last Home, have had the ability to count up to three).