In light of Inarius's tampering with the Worldstone, and the decline of the nephalem, Alaric and his allies turned to her, asking for aid in restoring the strength of their weakened children. Nereza agreed, but instead turned them into misshapen creatures that waged war against their brethren.
Nereza later came to reside on Greyhollow Island. She was there at the inception of the civilization that formed upon the island. She was worshipped as a goddess by a cult of the island's inhabitants who would regularly perform human sacrifices to feed her. They believed that, with sacrifices, she would protect the island from evil forces. However, Rayeld, son of the High Cleric, killed her physical body after realizing that she was the evil itself. The dying demon cursed the island, as her evil escaped into the ground itself, poisoning it ever since. It appears that Rayeld himself was corrupted by her essence, condemned to eternal torment on the island.
Nereza's history on Greyhollow reached the outside world in filtered form. It was known that the people of Greyhollow devoted theirselves to a female being that was there from the civilization's beginning, but theories ranged that this woman was a nephalem, a Wizard, or simply a very charismatic human who managed to prolong her existence. It has even been suggested that there was no one individual, but rather a multitude of individuals who all took on the same identity of the same figure. Whether Nereza had caused Greyhollow's fall, or whether her death precipitated, became unclear in history.