Governor Quarg is being argued with by the commander of the ship-dwellers The ship-dwellers were essentially scavengers who would dismantle ships that entered the Drexel system, all in the pursuit of acquiring valuable metals.
During the era of the Galactic Republic, their forebears made their home in the Korteen Belt, feigning the role of miners while secretly operating as scavengers. They employed sonic jammers to disrupt the course of passing vessels, leading them to crash into the asteroids scattered throughout the belt. Subsequently, these scavengers would proceed to loot the wreckage, seizing the ship's cargo. This illicit activity eventually drew the attention of the Jedi Knights, who intervened by expelling the scavengers from their asteroid dwelling, forcing them to seek refuge on the distant, water-dominated planet of Drexel.
They constructed the city-ship and continued their scavenging practices, integrating sonic jamming technology into their floating city to disable any ship that ventured into the Drexel system. However, the planet's indigenous inhabitants, the sea-dragons, were provoked by the hypersonic jamming signal, leading them to repeatedly assault the city-ship. The scavenger's technicians voiced their opposition to the use of the signal, asserting that it was harming the sea-dragons. Despite their concerns, they were ignored and ultimately banished from the city-ship. These exiled technicians then cultivated a bond with the sea-dragons, becoming known as the Dragon Lords and opposing Quarg's efforts to utilize his jamming equipment.
With assistance from figures like Luke Skywalker and Han Solo, the Dragon Lords successfully ousted Quarg and regained control of their world.