Considered a user-made mod, the game was created by Canadian company Ossian Studios, headed by former BioWare employee Alan Miranda.

Daggerford was originally conceived as a Neverwinter Nights premium module, which were products marketed through BioWare's website and supported by the game's publisher, Atari.

For Neverwinter Nights: Enhanced Edition Ossian Studios was hired to remaster Daggerford and finally release it as an official premium module.

[2] The player soon discovers that Talarenne was mistaken for an agent of Waterdeep who came to the city in order to find out the truth about Pwyll Greatshout's death and the current political situation.

Alan Miranda was a previous employee of BioWare and had worked on other Dungeons & Dragons titles like Neverwinter Nights and Baldur's Gate II: Throne of Bhaal.

[6] Miranda approached BioWare joint CEO Greg Zeschuk in 2005 to discuss the possibility of Ossian developing a "premium module" for Neverwinter Nights.

[9] Ossian began putting together the team for the module and decided to hire prominent amateur modders from the Neverwinter Nights fan community.

Choosing a designer required much of the time allocated for pre-production, and to compensate, Ossian developers immediately began creating the game, fleshing out details as they went.

[11] The production of Daggerford took longer than Ossian had anticipated, and in February 2006, BioWare's Live Team Lead Designer Rob Bartel offered the studio advice on their module.

"[13] Darkness over Daggerford surpassed 25,000 downloads in five weeks, a higher number than that recorded for previous Neverwinter Nights Vault's Module of the Year winners.