Historically the smallest of the Successor States, the Capellan Confederation has nevertheless been a thorn in the side of Houses Davion and Marik for the past 600 years.

The official birth of the Capellan Confederation occurred in July 2367 when Franco Liao managed to draw the 5 squabbling Capellan states together by offering himself as a compromise candidate for Prime Minister of the Capellan Commonality. Franco then managed to consolidate power for himself and his heirs by playing on the fears of each member state. The Family Liao has managed to maintain a hold on power in the Capellan Confederation in this way for almost 700 years, with but two exceptions.

The Capellans have always fought fiercely with the Free Worlds League, but have generally come out on the short end, losing many of its most valuable territories to House Davion and House Marik. Now generally regarded as the weakest houses, the Capellan Confederation still holds a strategic position in the center of the universe, and maintains strong fortifications in key locations. Unable to mount a major offensive itself, it would make a formidable ally for another House. Maximillian Liao is spending much effort in shrewd diplomatic maneuvering designed to bring the lost glory back to Capella and especially to House Liao.

The upper levels of the Capellan government rule as a dictatorship, particulary in regard to the production of war material, but lower levels tend to interpret the laws in a more enlightened manner.

Inter-realm trade is rare. Because of the long history of hatred between the Capellans and their Federated Suns and Free Worlds League neighbors, trade with them has been prohibited; only the bravest traders dare try to slip across the borders. Only trade with the Draconis Combine is legal, but the distances involved and the need to cross enemy territory make a journey fraught with danger.