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The original location for chaos dwarves is near and just south of the lesser demons in Taverley Dungeon. Get to the dungeon by walking from Falador or using the balloon network to ride over to Taverley from Castle Wars. After entering the dungeon, you have two choices. If you have level 70 Agility (65 with a summer pie), use the pipe obstacle shortcut, (carefully) run east past the blue dragons to the gate, then open it and run south through the lesser demons. If you can't take the shortcut, you must take the long route past the skeletons, giant bats, black knights, magic axes and poison scorpions.
Chaos dwarves are also located in the same room as chaos dwogres and chaos dwarf cannoneers in Keldagrim. But because the cannon-users are aggressive, you don't want to go there just to fight regular chaos dwarves!
I don't have any experience fighting these monsters in the Wilderness.
Equipment
Standard melee gear is sufficient for these. There is not much point in trying advanced methods like Dharoks because the respawn rate is so slow that it gains you little.
You can also mage or range the dwarves using standard gear.
Supplies
Bring super sets, as usual, and some food; a little for high-level players, more for mid-level players.
Familiar
Bring a beast of burden to carry back drops.
Combat Notes
These are easy monsters, and if there were enough of them around you could kill them quickly. The problem is that there are only six, they are very spread out, and they have an unusually long respawn time of 90 seconds. (Why, I have no idea.)
What this means is that you will spend a lot of time running around, between the ones near the bridge over the lava and the ones further north near the lesser demons. This is why you used to need something to restore run energy, though it's no longer necessary since the 2009 run energy update.
Note that sometimes you may not be able to attack the dwarves near the demons, if the demons are aggressive to you but the dwarves are not. Just move on to another one and wait for it to wander further south.
Drop Notes
The best drops these give are a few runes, some charms, mithril bars and muddy keys. The keys can be used to unlock the muddy chest in the deep Wilderness, or can be sold on the Grand Exchange.