The Penhalla system existed within the Klina sector, situated in the Slice region of the Outer Rim Territories. Its designation was the same as the Penhalla Contention, a conflict that occurred sometime between 19 BBY and 0 BBY.
This system, Penhalla, was first defined in the StarWars.com Online Companion for The Essential Atlas reference book from 2009, where its location was specified as grid square S-13.