Over the generation the clan worlds grew more independent of the central government on Pelagon and power gradually decentralized to the local clan capitals. Traditional Tapani historians placed this transition quite arbitrarily in the year 11,708 BBY (1,012 Tapani calendar), although others argued that shift to the Twelve Kingdoms Era happened much earlier.
During the early years of this period numerous clans merged, expanded, fought and died out. After eight centuries Twelve stable houses emerged each ruled by a King or Queen. These Twelve kingdoms existed in relative stability for over 3000 years although there were some territorial fluctuations. Towards the end of this era the houses begun to expand their territories to the periphery of the sector in order to provide greater source of raw materials and to establish a buffer zone between the expanding Herglic Trade Empire.
The worlds in the area of space that would later be called the Freeworlds Territory were lightly settled including Gilliana, Aleron and Achillea. The house made contact with the natives of Mrlsst and established a training relationship.
Each House ruled their own colonies without interference until Shey Tapani initiated the Unification War in 7348 BBY. Two houses were wiped out, and another collapsed on itself, but Shey Tapani succeeded in uniting the Houses and ending the Twelve Kingdoms Era.