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The Salvage Yard was a large construction site located in an asteroid field which was built by the Alliance to Restore the Republic as a metal recycling facility. Scrap metal was compacted into large blocks and directed through a series of rings that formed a flexible conduit to a smelting room. Molten metal from the smelter flowed to a centrifuge, where individual metals were separated and cooled into ingots, before passing through the rings to storage and shipping facilities. Soon after its construction, Rebel pilots began using the Salvage Yard as an unofficial training facility, flying a series of courses through the rings and asteroids as a test of their skill. This was not condoned by Alliance High Command, but no effort was made to halt the practice. The Rebel pilots referred to the Salvage Yard as the "pilot proving grounds".

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