The Disputed Zone is an area of space bordered by the Myriad League, the Terran Empire and Insectoid Space. In the center of the Zone is the largely unexplored Red Nebula, which is known to be infested by Pirates and worse. "Worse" includes the dreaded Ghost Planet¹, which has been scanned near the Nebula as well.

Some worlds within the Zone are inhabited by Human, Insectoid and various other races; some of these are aligned with the larger powers, some are independent and others are completely unknown. Powers range from isolated colonies and races without space-flight capability to small empires controlling several star systems.

The Myriad League is a loose confederation of interstellar races and powers. League borders are approximate, as not all worlds within its 'territory' are member planets. There is no standing League military, as members contribute ships and troops to deal with any conflicts. Given the disparity in military strength of League members and the difficulty in achieving consensus in such a large collection of sentients, League military operations are often chaotic. Some campaigns are fought with tiny squadrons of vessels and few ground forces, while others resemble a sledgehammer being used to swat a fly. Supply and organization of such operations has been described as "a nightmare".

The Terran Empire is predominately human, originating from Sol Three. Formerly aggressive in exploration and conquest, the Empire fought against the League in a series of wars a century ago. Since that time, Imperial expansion has slowed along most of its frontiers, though some Imperial Governors are still active in adding to the Empire. Imperial Forces have access to very advanced technology, but often use older equipment due to the difficulty of supply across large areas of space. Imperial Marines wear powered armor, and may be backed up by Colonial Militia using less sophisticated gear.

The Insectoid, who call themselves the T'Lik, are ant-like sentients that control a large area of space. Little is known about them, as they do not encourage intrusion into their territory. It is believed that they form colonies which retain attachments to the home worlds. Control seems to be decentralized, as worlds on the edge of Insectoid space operate largely on their own. The few invasions of Insectoid space have been brief, fought off by a powerful military equipped with advanced weaponry. Most troopers carry beam weapons and use jetpacks for mobility.

Within the Zone itself are numerous powers. These include Imperial corporations, the Red Nebula Pirates, colonies (Human, Insectoid and other) and various independent races.

Imperial Corporations often have access to military forces of their own. These are mainly deployed beyond Terran-controlled space and can be a formidable threat. Research stations, mining facilities, colonies and other outposts dot the Zone.

The Pirates of the Red Nebula seem to be an fairly organized group of criminals, engaging in both piracy and smuggling. Vessels and equipment vary, but can be of very good quality. Most of their bases seem to be within the Nebula itself, but smaller outposts are hidden throughout this area of space.

Colonies tend to be set up in the same manner as the parent worlds, though technology often falls behind. Some colonies are founded by war refugees or political dissenters who seek to hide in the Disputed Zone. Others are older settlements that were cut off from their homeworlds during war or other disaster. A few represent the advancing frontier of their parent cultures.