Palesia existed as a territory located on the world of Lannik within the planet's borders. The Red Iaro terrorist group and the Lannik government were in a state of conflict, during which the Red Iaro seized control of Palesia from forces loyal to the government. However, the terrorists proposed relinquishing control of Palesia during peace talks brokered by the Jedi Order, which were to be held on Malastare, a planet situated in the Mid Rim. The negotiation of lands that were legally Lannik territory by Myk'chur Finux Zug, representing the Red Iaro, triggered fury in Lannik Prince R'cardo Sooflie IX, who, deeply insulted, ended the negotiations.
Journalists working for HoloNet News based in Palesia broke the story of Rolsat Noviee, a pugil athlete who had achieved significant success. It was revealed that Noviee, believed to be a Lannik, was actually a Clawdite changeling.