With the rise of the Chantry in Thedas, mages became targets of public persecution and fear. The religion's harsh distrust of magic use forced mages to hide their talents. Those who wished to practice magic openly retreated to isolation, often in organized settlements, those that did not risk death.
Despite the Chantry's ridged stance on magic, it does not forbid it completely. The commandment of the Maker states that magic should serve man rather than rule him. Emperor Kordillus Drakon, who founded the modern Chantry in Andraste's name, realized that magic had potential as a tool for public benefit. During the Emperor's reign the first Chantry sanctioned mages were ordained and placed under close supervision of the organization.
Although mages were permitted to serve the ruling classes under Drakon, two important limitations were imposed: blood magic was strictly forbidden, and mages could not unduly influence rulers or become rulers themselves. Because mages were prohibited from influencing those in power, they required to be politically neutral. Most mages restricted their use of magic to healing and other peaceful applications. However the Chantry still feared that playing with magic risked mages becoming abominations. To monitor proper magic use, they created the Templar Order. Templars were placed in chantries where mages served. From the beginning, the relationship between templars and sanctioned mages was strained at best.
In 1:5 Divine, the Second Blight struck. Emperor Darkon sought the aid of mages in the battle with the darkspawn, permitting them to release their full power without restraint in the name of humanity's survival. The mages proved essential and won enough respect to negotiate greater independence.
The first Circle of Magi was created during the Second Blight, with the signing of the controversial Nevarran Accord by the Chantry and the newly aligned Seekers of Truth. The Circle served to keep close tabs on those with magical abilities while mentoring their use of magic for occasions when it would be required, like injury or war. Circle towers cropped up in communities across Thedas. They became a refuge for those willing to bend to the Chantry imposed restrictions, and prison's for those who would not.