The Elves of Eregion created the Rings of Power with Sauron’s involvement.
Eregion was an Elven realm near Khazad-dûm during the Second Age. Its most skilled smiths, led by Celebrimbor, worked with Sauron while he was disguised as Annatar, a seemingly benevolent teacher. Through this association, the Elves learned techniques that enabled the making of the great rings.
The Elves eventually recognized Sauron’s treachery when he secretly forged the One Ring in Mordor. They removed their own rings and did not use them openly while he possessed the One. The Three Elven Rings were made by Celebrimbor without Sauron’s direct physical participation, although their knowledge came from the earlier collaboration.
The seven rings for Dwarves and the nine for Men were distributed by Sauron. The Dwarves resisted direct domination more successfully, while the nine human bearers became the Nazgûl. Eregion is therefore distinct from Mordor, where Sauron made the One Ring.