Sauron originally had the Rings of Power forged: three for the Elves, seven for the Dwarves, and nine for mortal Men. In so doing, he also decieved them all, earning his title of Sauron the Deciever, by forging a master ring in secret- The One Ring to rule them all.
Before Sauron could use this Ring to dominate all Middle Earth, he was defeated by an alliance of Men and Elves, and Isildur son of Elendil cut the Ring from Sauron's hand. Dismayed by this loss of power, Sauron discorporated, and became for centuries a mere spirit of malice, infecting the forests of Mirkwood with a lingering evil. Two and a half thousand years later, Sauron returned to his lands in Mordor and began rebuilding his powers and his armies to try again to dominate Middle Earth.