Penwick school of Witchcraft and Wizardry was founded in 1841 by Griffith Virell, Gerard Mercator, Viviane Floranti and Pelles Modron. Mirroring the creation of Hogwarts, each of the founders also created a house in the school.
- The first house is house Dranaga, which was founded by Griffith Virell and is the house that most parents wish their children to be in because of its reputation of producing great leaders.
- The second house is house Mercator, which was named directly after Gerard Mercator, the famed muggle cartographer. This house is favoured by students with a naturally curious inclination.
- House Floranti was stewarded by the great witch Viviane Floranti and attracts idealistic and patient students.
- House Modron was created by Pelles Modron and it is generally considered to be bad luck to be sorted into this house because of Modron's reputation and the association of its sigil, a black hound, with The Grim.
After overseeing their houses for a few years, Gerard Mercator and Viviane Floranti both choose to retreat to their normal lives, but Pelles Modron and Griffith Virell stayed on and shared power for a while. Nevertheless, it was plain to everyone that there were tensions between the two. Pelles Modron favoured a more intuitive understanding of magic, allowing and encouraging experimentation whereas Griffith Virell insisted on magic being done properly and by the book. They also butted heads on whether other beings should be allowed at school with Virell arguing against such inclusions. Griffith saw Pelles as an unruly younger brother who kept derailing his perfect school, his legacy.
Their conflict came to a dramatic head in 1857 and that year marks a dark page in Penwick's history.
In this year it was discovered that a great and terrible dragon lay slumbering underneath the castle. Some say it had always been there, others say it had secretly been brought there by Pelles Modron and that Modron had some dark purpose with it. In Griffith's account of the events, Pelles Modron is said to have awakened the dragon which lay slumbering underneath the foundations because he thought he could tame the great beast. Griffith and the other founders came to Modron's aid, but could not prevent the great beast from felling Pelles Modron and Gerard Mercator. Viviane Floranti fled the scene after the battle with the great beast and was never heard from again, leaving Griffith Virell as the sole survivor of the deadly encounter, and also the only source on what exactly transpired.
This much is certain: Griffith Virell became the headmaster of Penwick and lead the school for seven more years until his passing in 1864 when he succumbed to a strange and wasting illness. To this day there is still much speculation about what happened in 1857 and the exact causes of the death of each of the founders, or Viviane's fate. The generally accepted version of events however is that Griffith Virell was the hero of the day who saved the school from the great dragon, and it is because of this history that house Dranaga has always had the brightest reputation of all the houses at Penwick.