Well, you could take elements from both. How does this sound?<br/><br/>As the Europeans spread into the US centuries ago, the fae came with them. The fae took land in the same way the mortal settlers did, their Sithens and mounds appearing in the wilder places, dividing themselves into fuedal territories under the banner of their own nobility, forming communities both by kith and by affiliation (seelie / unseelie).<br/><br/>The native spirits fared much as the mortals did, some living in peace with the newcomers, others fighting. The end result was much the same.<br/><br/>As the world turned, industry grew and belief in magic and the fae dwindled. The fae communities faded in turn, holding strongest in the rural areas where old beliefs still were strong, and in other isolated spots where either natural magics or the local mortals beliefs gave them anchors.<br/><br/>In time, things changed again, belief in magic and the supernatural waxing stronger. This empowered the remaining fae, those who had not faded, or fallen into, for lack of a better term, a magical hibernation. Councils met, and the fae sought to ensure that the period they had gone through should not happen again.<br/><br/>It was decided that they would try and prepare the world to acknowledge them. Some were in favour, some against. Some agree to work this task, others would have no part of it.<br/><br/>Select mortals were sought out, those who might best rekindle beliefs in myth and magic. Books were written, songs were sung, and bit by bit, the magic flowed back into the world.<br/><br/>Eventually it was decided that the time was right, and those fae deemed most likely to win public acceptance were to announce their existance to the world.<br/><br/>People being people, the reactions were mixed. Once the hysteria died down, some had fallen in love with the fae, others were ready to denounce them as evil incarnate, and every opinion in between.<br/><br/>How does that sound?