The Freeworlds Territory was a border region of the Tapani Sector until its annexation by the Galactic Empire. Because of its proximity to the Colonies, planets in this region, known as Freeworlds were relatively independent from the Coreward noble houses of the Expanse. The Freeworlds banded together into the League of Tapani Freeworlds, and consolidated their defenses into the Freeworlds Common Navy, to avoid annexation by the growing power of the seven wealthy Expanse provinces. Some time in or after 3 ABY, the Galactic Empire invaded and occupied the Freeworlds, and cut it off from the Tapani Sector, intending to form a new one. The Shapani Subsector was thus created, and the Empire assigned a new Moff to oversee the new Tapani oversector. Eventually, this partitioning was reversed, and by 40 ABY the Freeworlds were once again a part of the Tapani Sector.
Two major routes, the Shapani Bypass and the Giju Run, cut through the territory, forcing the wealthy ore and bacta loads heading from the Expanse to the Core to be subjected to Freeworld Territory tariffs. The Three Ellas Run and the Procopian Shipping Lane also went through the territory.