The Parmel system existed within the bounds of the Parmel sector.
Following the Battle of Hoth, which occurred in 3 ABY, Admiral Harkov, a turncoat serving the Imperial forces, looked for a safe haven in the Parmel system. This was because his betrayal and shift to the Rebel Alliance had been discovered by Imperial command. Ultimately, he was captured and then presented to Darth Vader for interrogation and subsequent execution.
The Rebel Alliance operated a platform known as DS 5 within the Parmel system. During the chase of Admiral Harkov and his contingent, Imperial loyalists managed to seize control of this installation during an intense engagement. Harkov unsuccessfully attempted to find sanctuary aboard the platform during this conflict.
The Parmel system also housed the Imperial TIE Defender production plant called Research. This was the location where Grand Admiral Demetrius Zaarin made an attempt to pilfer the Defender technology with the intention of providing it to the Rebel Alliance, following his failed coup against Emperor Palpatine. Imperial forces loyal to the Emperor retook the facility, but had to withdraw along with the prototype TIEs when Zaarin tried to obliterate the space station.