The islands south of what used to be the continent of Xian became some of the first colonies of the Xian Empire. These colonies were left to fend for themselves when Xian was destroyed and the Empire collapsed. After a tumultuous period, the surviving colonies became nations unto themselves. Alliances were formed, and wars were fought. Eventually, alliances were formed, and when the Daishen Empire invaded, these alliances gave birth to the Xianluan Confederacy.
History
After the the Age of Horrors, the fire giants laid claimed to these islands, and founded the empire of Balmorgrim. At the same time on the continent north of the islands, the human empire of Xian was established. Eventually, these two empires would come into contact and war with each other. After hundreds of years of conflict, Balmorgrim fell to Xian. The fire giants that survived their eradication at the hands of the humans abandoned the islands, and the Xian moved in. The island chains became some of Xian's first colonies of their growing empire.
Xian's eventual destruction caused great chaos amongst the colonies. When order was finally re-established, the colonies found themselves on their own, with cracks in their unity forming. Over time, factions arose, and colonies declared their independence, forming their own nations. Inevitably, conflict arose amongst these new nations. Islands exchanged hands, nations fell, and others arose in their place.
This brutal dance of loss and conquest changed when the fleets of the Aerlonesti Empire invaded. The elves claimed over half the islands in the region before the remaining Xianluan nations realized that only by uniting together did they have a chance of successfully resisting the invaders. They formed the Xianluan Alliance, and held off the elves for hundreds of years until the Aerlonesti empire collapsed. By then, the alliance was formalized into the Xianluan Confederacy.
Throughout the ages, the Confederacy successfully resisted other invaders. That streak ended during the Age of Strife when the Daishen Empire invaded and conquered the northern islands of the Confederacy. The Daishen successfully held on to that part of the region for over two hundred years before internal strife in the Empire saw its support in the region fall. Some of the islands were reclaimed by the Confederacy, but most of them fell into chaos as former Daishen lords claimed the islands for themselves. The region fell into rampant piracy so fierce, that the Confederacy was unable to reclaim them. Facing other issues, both internal and external, the Confederacy all but abandoned the northern islands to their own fate.
Towards the end of the Age of Strife, the Confederacy experienced another time of chaos. By that time, corruption had grown widespread throughout the Confederacy. The nobles and aristocracy grew in wealth and power at the expense of the common folk. What was once a form of bondsmanship to pay off debts had degenerated into full blown slavery. The law had grown into a tyrannical order that served only a few and oppressed the rest. There were still those in power that believed in the common good for all, but they were few. All this changed with the arrival of an adventuring guild known as the Mavericks.
The Mavericks were attempting to locate a fabled treasure trove, and some of the clues to its location led them to the Xianluan islands. They quickly became embroiled into the local politics. Through their antics, the ignited a spark, setting off an explosion of chaos that had been brewing for centuries. The common folk, oppressed and preyed upon the rich and noble, rose up all in rebellion.