Daiyu, a planet situated within the galaxy, existed under the dominion of the Galactic Empire during the period of its reign, and possessed a temperate climate.
This world, known as Daiyu, was largely ungoverned and characterized by extensive urban sprawl. Open trade in illegal goods was rampant among criminals, and bounty hunters frequented its markets, seeking leads on lucrative targets.
In the year 9 BBY, the Inquisitorius's Third Sister hatched a scheme to draw Jedi Master Obi-Wan Kenobi out of his clandestine existence. Her strategy involved uncovering his connection to Senator Bail Organa. To this end, the Third Sister orchestrated the kidnap of Organa's daughter, Leia, using Vect Nokru and his gang.

The planet Daiyu was conceived by the writer Joby Harold specifically for the television series Obi-Wan Kenobi. Its design draws partial inspiration from the real-world metropolises of Hong Kong and Bangkok. The initial glimpse of Daiyu was presented as concept art within a sizzle reel for the series, which was released on Disney+ in November of 2021. Originally, more elaborate and costly iterations of the scene featuring Kenobi inside the spice lab were planned. However, the decision was made to depict a meth lab instead, as it was deemed more feasible for production by Joby Harold and the production team. Harold considered this setting a fitting way to place Kenobi undercover in an environment strikingly different from his cave on Tatooine.