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In 1179 YM, the city state of Vetlan declared independence of the Pundran Magnacy or possibly the Ikand Rajdom. Once a wealthy port city, Vetlan had been caught between the two for many years in the Swamp Wars, regularly being sacked and changing sides between the two. Most wealthy merchants had abandoned Vetlan, seeing it as a lost venture in the ongoing struggle, and elven nobility has long since fled to Pundrapur or Ikandore. As such, the remaining population were largely down on their luck merchants, peasants, slaves, and a few disillusioned soldiers.

It is one of these disillusioned soldiers that sparked the rebellion. Ursang, a former mercenary halfling turned city governor who had fought as a general for Magnus the Flaccid, refused to send another wave of involuntary recruits to the War. His refusal led to the Magnus declaring him a traitor and outlaw and demanding his arrest, which the surviving plutocrats and aristocrats of the city refused to carry out. A few tense months of negotiations led to nothing more than further threats from the Magnus, and at the pressure of the city, Ursang declared independence, declaring an election for the now city state's ruler. Near unanimously, and against his wishes, Ursang was elected Captain and Defender, or dictator for life.

With both Pundrapur and Ikandore at the doorstep, Ursang's first thought was to gain new allies. As a halfling, he was a nominal Bookburner, and set about currying favour with the Palaan League, hoping to gain the favour of or potentially join the pact of merchant republics. As such, to the resentment of many of those who elected him, he emancipated the slaves of Vetlan, and allowed them to participate in the city's previously strictly guild controlled glassware industy, as well as train with the Vetlan Collegiate of Meteoromancers. He has also begun recruiting in earnest to attempt to build an army that can hold off both sides of the Swamp Wars, as well as using all of his old contacts to hire as many mercenaries as he can afford to aid in the city's defence.