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The Prohibition Era was a significant period in Lovia's history, and lasted between 1928 and 1937. Prohibition was implemented in 1928 via the Temperance Act passed in January and taking effect in March.
Prohibition was introduced in Canada in the late 1910s and early 1920s. It was followed by the U.S., who went dry after the Volstead Act was introduced in 1920. From then on, Lovia became a haven for Americans and Canadians wanting a drink. The number of Lovian distillers (over 90% owned by criminals) grew enormously during this period and cash flowed in enormously. Around this period many politicians were involved in bootlegging schemes and were charged in Lovia or the US.
In January 21, 1928 the government passed a law banning the sale, production or consumption of alcohol in Lovia (the Temperance Act), to take effect the 16th of March (the day before St. Paddy's). Almost immediately illegal distilleries sprung up across the country. Some settlements favoured the law, whilst others, including the Sylvanian village of Pool openly opposed it. Several cartels began to emerge, including the Gallo Cartel of Sylvania and the Jones Cartel of Kings
The prohibition law was largely ignored in Oceana, which was ruled by the local Roman-Catholic Party of Lovia, which had most of its support among the Eastern European populations that are known for their drinking habits. Hurbanova was one of the few places in Lovia where alcohol was manufactured, sold and consumed as if it was still legal. As a result, many people from other states, especially Sylvania, bought alcohol in Oceana, leading to frequent border checks by the Sylvanian State Police. This also led to problems for the other States, where prohibition was more rigorously enforced, as the Cartels used the unique political situation in Oceana to brew beer to sell across Lovia.
In Truth Island, the island's unique nature and isolation made ite a haven for rum-runners. They would distribute Oceana beer in the north and ship out Mexican alcohol to the rest of Lovia. Rumrunner shacks were located in the south-east of the island and many of these resorted to paying off the Sofasi police for protection from the southern cartels and other mobsters. The end of prohibition saw all operations shut down in 1937.