Nallastia existed as a moon of Fondor, having undergone terraforming. Settlers originating from the Darpa sector populated it. Governed by a monarchy, it opted to remain independent from the Galactic Republic.
Around 4000 BBY, the satellite was given its designation when Margrave Octan, who declared himself as such and hailed from the Darpa sector, acquired the Fondor moon to shield it from industrial development. This Margrave, a member of the Darpa sector's ruling family, the Royal Octans, terraformed the satellite, bestowing upon it the name of his spouse, and subsequently founded a colony there. To move his kin and 867 colonists, the Margrave had a starship constructed, christened the Sun Runner.
The Nallastians, who maintained the terraformed jungles, were devoted to environmentalism and preservation, even to a religious extreme. This led to strained relations with the Fondor Guild of Starshipwrights. Fondorians considered the Nallastians to be naive nature enthusiasts, while the Nallastians saw Fondor's inhabitants as the epitome of industrialists. Although each group offered food and protection to the other, they largely stayed apart, maintaining only this reciprocal relationship.