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In addition to the military occupation of Kartak, the former core of the Episurian Empire has been broken up into three administrative districts, each of about half a dozen worlds. These are run locally by dwarven rulers, often members of fringe political groups and disgraced clans under the old Empire, but also kept in line by substantial garrisons of Imperial Marines in the so-called Fleet Concessions, large districts on each world used by the Kartak government. The Confederacy is kept intentionally weak, and infighting and rebellion are overlooked so long as the tithes keep coming and no dwarven population dares to attempt to rebuild the Episurian Fleet.
About half of the Episurian worlds are not part of the Confederacy, considered too poor or too far-flung to be worth administering. These, of course, are centers of piracy, but The Mage Imperium appears to believe that policing Episurian space is cheaper than directly conquering and rooting out the renegades and raiders that emerged from the fractured Episurian navy.