The Freeworlds Territory functioned as a boundary zone within the Tapani sector until the Galactic Empire incorporated it. Due to its closeness to the Colonies, the planets in this area, referred to as the Freeworlds, enjoyed a level of autonomy from the Coreward noble houses of the Expanse. To prevent being absorbed by the increasing influence of the seven affluent Expanse provinces, the Freeworlds united to form the League of Tapani Freeworlds and integrated their defenses into the Freeworlds Common Navy. At some point in or following 3 ABY, the Galactic Empire launched an invasion and occupation of the Freeworlds, severing its connection to the Tapani sector with the intention of establishing a new sector. Consequently, the Shapani subsector came into existence, with the Empire assigning a new Moff to oversee the newly established Tapani oversector. This division was eventually undone, and by 40 ABY the Freeworlds were once again integrated into the Tapani sector.
The Freeworlds Territory occupied the rimward portion of the Tapani sector. The planets generally contained abundant ores, making them targets for mining operations, but were generally seen as underdeveloped. The five most vital planets in this territory were Tallaan, which later functioned as a capital and shipyard; Mrlsst, which was the location of a prestigious university; Aleron, the base of the Aleron Trade Cooperative; Lamuir IV, which had previously been a part of the Herglic Trade Empire; and the oceanic planet of Neona. Fondor was another planet, and a significant galactic shipyard.
Several key hyperspace routes intersected the Freeworlds. The most crucial of these was the Shapani Bypass, also known as the "Bacta Run." As a segment of the extensive Rimma Trade Route, it served as the primary pathway for transporting Bacta from Thyferra to the Core Worlds. The Giju Run established a link between the Freeworlds and the Herglics, continuing into the Procopian Shipping Lane, which connected them to the remainder of the Tapani sector. The Three Ellas Run branched off from the Procopian Lane at the Tavya system and provided connections to the planets Pernella, Dorella and Sorella.
Initially, the planets within the Freeworlds Territory were merely minor mining outposts belonging to the noble houses of the Tapani Federation. The nobles also utilized these planets as places of exile for members of their houses who had fallen into disfavor. Because the Shapani Bypass and other routes were not yet established at that time, the only market for Freeworld ore was the other Tapani planets. As a result, the colonies were generally poor and exploited by the Tapani Houses. This situation began to change with the establishment of the Giju Run. The connection to the Herglic planets led to an economic boom for Tallaan and Neona. Eighteen centuries later, the Shapani Bypass was charted, and the rest of the Freeworlds also benefited. This led to intense competition among the Houses for control of the planets. However, before a full-scale war could erupt, the Nobles agreed to designate the region as "Freeworlds," similar to the sector capital Procopia, granting them a degree of independence.
The planets united to form the League of Tapani Freeworlds, with Tallaan, Mrlsst, Aleron, Lamuir IV, and Neona as its primary members. Given that the majority of the mining corporations remained under the control of the Nobles and pirates plagued the planets as soon as the protective navy withdrew, the Nobles believed they could easily control these "independent" planets.
However, the planets soon developed sufficient economic strength to break free from the Nobles' control. They nationalized companies and subsequently sold them to investors from outside the sector. Trade agreements were signed with the Core, and the newly established Freeworlds Common Navy drove away pirates. Acts of sabotage carried out by the houses in retaliation soon ceased after several companies joined the powerful Mining Guild.
The already established planets diversified their industries, and other planets within the sector were developed and settled. Tallaan emerged as a major shipping hub, while Mrlsst gained recognition for its university and research facilities. This period of independence endured for several centuries.
The Freeworlds also held non-voting memberships in the Great Council and were partially impacted by decisions made within its chambers, although they were not admitted to the Tapani Senate or the Council of Ten.
When the Galactic Empire rose to power in the galaxy, the nobles reached an agreement with Palpatine that allowed them to maintain their autonomy, similar to the situation under the Old Republic. The Empire stationed several forces in the sector under the command of Moff Laird Gustavu, with the majority of these forces concentrated in the Freeworlds Territory to safeguard the heavily trafficked Shapani Bypass. However, various entities worked covertly to pressure the Empire into invading the Freeworlds, which occurred sometime after 3 ABY. The Freeworlds subsequently became the newly created Shapani sector, a sub-sector of the Tapani sector.