Nar Hypa, a desolate and barren moon characterized as a desert, orbited Mataou. It was situated within the Mataou system of the Anoat sector found in the Outer Rim Territories. Significantly prior to the Galactic Civil War, the Hutts utilized Nar Hypa as both a spaceport and a center for trade. In the Age of the Empire, the Galactic Empire seized control of the sector, transforming Nar Hypa into a repository for goods and cargo seized from smugglers and various lawbreakers.
During the Iron Blockade that encompassed the Anoat sector, the Empire maintained a minimum of four storage complexes on the lunar surface. After discovering the existence of these complexes, a local criminal figure known as "Happy" Dapp sought assistance from a youthful smuggler. His goal was to reconstruct a crashed Imperial shuttle found on Hoth, and subsequently use it to plunder the four storage facilities for their valuable resources.