The Republic of Mardasia is a parliamentary republic formerly known as the Dominion of New Zealand, led by Prime Minister Keith Holyoake. Its colonial administration was left isolated during and after the collapse of the British Empire, causing a Labour-Liberal coalition to win the 1919 general elections. Its parliament had a heated discussion regarding the future of New Zealand; should they hold on to the spirit of Britain, tightening their relationship with a new Canada? They decided for a radical solution; New Zealand would be transformed into the Republic of Mardasia, a wholly independent multicultural, democratic state which would align itself with the United States. During World War II, Mardasian forces fought the Empire of Japan at land, sea and air. Since then, the country has become highly developed and relatively peaceful, only struggling with the pirate issue. In 1961, the problem got to a level that Mardasia decided to invade New Caledonia, a subregion of the Oceanykan Federation, containing numerous major pirate and black-market ports. They were greatly aided by The Republic of France, which set up a joint Franco-Mardasian administration. Cestep's utter defeat in this conflict, coupled with a later German surprise attack at Farenday, is thought to be the catalyst for the contemporary Oceanykan Revolution.
Despite a troubled relationship with its undeveloped and violent counterpart, many Mardasians consider Australians to be their kin, and a large volume of legitimate trade is done between both nations. The Auckland Embassy is one of the very few that the Oceanykan Council maintains, forcing most of the world's nations to pass through New Zealand if they want to communicate with Oceanyka.