"Of course I don't mind my neighbour being a naj. With her standing a full meter taller than me, we chat on the stairs."
— Zile, dwarf
"... here we have the berry cakes, and the beverages. Make sure the elves don't get any of the blue jugs. If anyone asks, the berries make most likely a stripey leg pattern for the garren, and dwarven hair bluish magenta, but tell them it depends on which vegetables they had."Artists' notes
— Garahinar, banquet overseer
Very soon after coming up with my world I decided that I wanted to break the racial barriers established by many fantasy settings, and instead aim for a more "sci fi" way of races living together. And so, there are not "elven lands" or "dwarven mountains" (although it might be called such after its population majority), but in general, all races can be found everywhere. Racism in Genius Loci is considered a mental illness, the ultimate failure of rationality, and is very rare - with a few notable exceptions (I do need bad guys). Also, gender doesn't matter. The differences between the species are so great, that those between sexes of the same species go unnoticed.
Cultural heritage is defined by culture more than race, and an elf and a gar from the same land will get along much easier than two elves from different lands. Of course, you'll probably marry so you can have children, but with the new rise of shapeshifting spells, more mixed-species couples have formed; adoption has always crossed racial barriers anyway.
Society does employ the natural strengths of races, putting the strong raganaj in warrior services, and the dextrous dwarves in crafts and surgery. This is still only a preference and not a rule.