The Elders are in charge of the Liverpool Avalon. They have not been seen in Skin Deep yet, but Lorne Lyon does say that Tony will probably have to meet with them sometime due to his situation.
They are the ones who set up the rules that, in a Bar Bet, Nemean lions cannot participate, nor can it be a real fight or get too violent. The Elders also create other rules about the Avalon and have the power to take away an individual's medallion if they break the rules; this has happened to Jon Lyon on several occasions.
Described as being like 'grandparents', Elders make sure everything runs as smoothly as it can in the Avalon.