Khoonda served as the self-ruling administration for the world of Dantooine starting in 3956 BBY and lasting until at least 3951 BBY.
The settler population on Dantooine, a relatively new colony, found themselves without assistance when Darth Malak obliterated the Jedi Enclave there in 3956 BBY. At that time, the Galactic Republic teetered on the brink of destruction and was unable to provide any aid to a remote planet in the Outer Rim Territories, having lost interest in it following the loss of the Jedi.
Left to their own devices, the settlers were compelled to form a government capable of self-regulation. Terena Adare, the leading figure in this newly formed government and formerly the Agricultural Administrator during the Jedi's presence, selected the former property of the Matale family as her base of operations. This estate underwent reconstruction to repair damage caused by the Sith bombardment and was subsequently renamed Khoonda.
Despite symbolizing a fresh start for the settlers, Khoonda's governance proved to be less than ideal. Financial difficulties plagued Khoonda. Dantooine lacked complete self-sufficiency; agricultural exports barely covered essential upkeep, and the settlers required additional funds for expansion and reconstruction. Consequently, Adare and her constituents were forced to accept salvagers and utilize the revenue generated from their looting of the ruined Enclave.
The absence of a strong military and effective law enforcement constituted another challenge. Khoonda's militia primarily consisted of farmers and merchants, with only a handful of militiamen, including their commander Zherron, possessing any significant military training or experience. They struggled to safeguard the settlers from the indigenous kinraths and kath hounds and were certainly outmatched by Exchange mercenaries, who became active on Dantooine following the Jedi Civil War. The majority of these mercenaries were former soldiers and veterans of the Jedi Civil War; their leader, Azkul, for example, had served as a Sith trooper during the conflict. Although the mercenaries refrained from engaging in open conflict at the time, their intentions on Dantooine were undoubtedly not geared towards peaceful coexistence with the local population. The settlers tended to hold Adare and Zherron responsible for their inaction but recognized that the mercenaries would have already seized control of the planet without their presence.
However, the arrival of Meetra Surik in 3951 BBY brought about a degree of improvement in the settlers' circumstances. Surik dedicated herself to assisting Khoonda and repairing the extremely tarnished reputation of the Jedi on Dantooine. Despite the fact that Surik, in her haste to liberate Master Vrook Lamar from the mercenaries, inadvertently triggered a violent assault on Khoonda known as the Battle of Khoonda, the settlers remained unaware of this. Surik was remembered as a savior who shifted the balance of power in favor of the settlers and fought for Khoonda, securing its triumph and eradicating the mercenary threat permanently.
Prior to the battle, Khoonda itself was in a dilapidated state. The issues confronting Khoonda encompassed malfunctioning turrets, damaged droids, wounded soldiers, security vulnerabilities, and a scarcity of recruits willing to enlist in the militia. Surik successfully resolved these problems before the assault.
With the elimination of a hostile military force, the inhabitants of Dantooine were able to resume their daily lives. By that point, the salvagers had extracted all items of value from the Jedi Enclave, leaving only the perilous sublevel, infested with laigreks, relatively untouched. As the settlers' sentiments towards the Jedi transitioned from animosity to admiration, they resolved to honor them for their past assistance. When Surik returned to Dantooine to confer with the three Jedi Masters—Vrook, Kavar, and Zez-Kai Ell—she discovered a fully restored Enclave, rebuilt almost to its former grandeur, instead of ruins.
The fate of Khoonda as a governing body after 3,951 BBY remains unknown. However, Darth Traya's prophecies indicate that the Republic reestablished its presence on Dantooine, ushering in a new era of prosperity for the planet. In this scenario, Khoonda may have been rendered obsolete or integrated into the Republic's governmental structure, potentially incorporating the new Jedi in the Enclave.
In the alternate dark side scenario, the player, controlling Meetra Surik, has the option to ally with the mercenaries against Khoonda. Following the battle, Azkul occupies the Administrator's office in place of Adare. Nevertheless, Darth Traya foretells that Dantooine will eventually crumble into ruins, becoming a haven for nomadic peoples and primitive tribes who are oblivious to the history beneath their feet.
Despite establishing his business in close proximity to the Jedi Enclave, Adum Larp, a Rodian merchant, survived Darth Malak's attack and was later observed at the Khoonda building.