The first settlements to be built in the region were scattered farms, mostly belonging to Scandinvian immigrants. The first sizeable community to arrive was a group of Russians led by Nikolai Sharapov, who founded Sharapovsk on Philosopher's Island in 1880. Less than a decade later, Sofasi was founded on Asian Island in the west.
In 1892 the islands were officially declared as the 'Northern Territory,' with the exception of the Russian settlement, and the same year a battle was fought between inhabitants who supported the king's rule and republicans. After a republican victory, the Territory cut off most links with Noble City. The next year, however, silver deposits were discovered in the West, and a steady stream of immigrants sprang up from the US and China, as well as the south of Lovia. These immigrants changed the balance of power, as they were more sympathetic to Lovian rule, and links with the south were strengthened.
In 1903, settlers from the US founded a new village altogether, Kinley, on what would later be called American Island. By now disputes were arising between farmers and miners, immigrants and early settlers and many other diverse groups that inhabited the area. In 1905, delegates from all over the Territory, as well as the rest of Lovia, went to Noble City to hammer out an agreement for the division of Lovia into five states. The Territory was split into two part, Clymene in the west and Seven in the east.