The Nilgaard sector represented a specific sector situated within the Outer Rim Territories region of the galaxy. Notably, the planet of Karkaris, the original homeworld of the Karkarodon species and the endpoint of the well-known Perlemian Trade Route, was found within this sector. Throughout the Clone Wars period, this sector demonstrated a strong allegiance to the Confederacy of Independent Systems.
Following the theft of the Imperial corvette named Carrion Spike from Moff Wilhuff Tarkin, and its subsequent flight to the Fial system located in the Tion Cluster, Imperial Intelligence initiated analyses to determine potential hyperspace jumps the vessel could execute into adjacent star systems, as well as deeper penetrations into the Nilgaard sector.