It takes place after the War of Red Mountain. The main character is 18 in the year 685 1E, which is supposed to be 18 years after the end of the War. Prior sources (http://uesp.net/wiki/Lore:Dwemer_Inquiries_Vol_I) say the end of the War was in 1E 700.
The UESP article does say that the book is a "historically inaccurate epic."
Just thought I'd point this out because I can.