The region that would become the St. Ives Compact was once the St. Ives Mercantile League, a nation that was formed in 2245. Despite an anti-war stance, the League battled with the Capellan Hegemony and fared poorly. Nevertheless, the League joined with the other Capellan nations to form the Capellan Commonality in 2310, which became the Capellan Confederation in 2367. Owing to its status as one of the five original founding nations, the League became the St. Ives Commonality, one of five such districts within the Confederation.
The Compact was formed in 3029 as a direct result of the Fourth Succession War. Duchess Candace Liao, firstborn of Chancellor Maximilian Liao and his heir, fell in love with Justin Xiang Allard, a Federated Suns spy who had infiltrated the Capellan Confederation's spy agency the Maskirovka. Rather than stay in the Capellan Confederation with a double-agent who helped conquer a third of her home nation, she fled and took the St. Ives Commonality with her. In addition, Candace feared the reign of her father, who was descending into insanity.
Given the destruction the Capellan Confederation Armed Forces suffered at the hand of the Federated Suns, they were unable to do much about the St. Ives secession, though Capellan loyalists did their part. A full-fledged rebellion took the capital of St. Ives, Tian-tan. Knowing that her family would show no mercy, Candace organized her forces and fought back with the help of Suns intelligence agents. Candace and forces loyal to her won back control of the capital world in less than a month. CCAF attacks on civilian targets served to disrupt the small nation since the Confederation lacked the military might to go to war. To further protect her fledgling nation, Prime Minister Candace allied with the Federated Suns, who provided military protection.
The 3030s and '40s were an era of peace for St. Ives, despite the efforts of the Federated Suns. First Prince Hanse Davion wanted to annex the Compact, much as he had done with the Tikonov Free Republic. In 3031 Candace refused to allow the Armed Forces of the Federated Suns to use the Compact as a staging area, even going so far as to threaten to aid the Confederation by sharing the plans for invasion. Hanse backed down and never again tested Candace Liao
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