The Lipsec system existed within the Koradin sector, which itself was part of the Outer Rim Territories. This system was located at the termination point of the Lipsec Run hyperlane, establishing a connection to the Virgillia system.
Exploration of the region of space encompassing the Lipsec system took place between the years of 1000 BBY and 25 BBY. In 22 BBY, during the early stages of the Clone Wars, the Nineteenth Sector Army of the Galactic Republic was tasked with defending the area surrounding the system from the forces of the Confederacy of Independent Systems.
Not long after the Commerce Guild took control of the planet Ukio during that same war, the Lipsec system appeared on a galactic map. This map was displayed on a viewscreen within a facility operated by Passel Argente, who held the position of Magistrate in the Corporate Alliance. Around 25 ABY, the Lipsec system's population was estimated to be somewhere between one and ten million inhabitants.
The reference book The Essential Atlas, penned by Daniel Wallace and Jason Fry in 2009, provided the first mention of the Lipsec system, positioning it within grid square I-18. The system made its initial appearance in The Clone Wars: Act on Instinct, a webcomic created by Pablo Hidalgo and published on StarWars.com throughout the second season (2009–2010) of the Star Wars: The Clone Wars animated series.