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Zarra was the capital city on Cato Neimoidia, and one of the largest cities on the Neimoidian controlled purse world. It contained the Federation's Folly. Along with the city of Tarko-se, Zarra was one of the largest cities on the planet.
During the Clone Wars, the city was regarded as an important outpost of the Trade Federation and even the Separatist movement. Like the rest of the planet, Zarra experienced the Clone Wars first hand, as the planet was the site of three major battles of the Clone Wars, deciding the fate of the Neimoidian purse worlds and the Trade Federation influence in the Colonies region.
After the end of the Clone Wars, the city, like the rest of the planet, was absorbed into the Galactic Empire, following the dissolution of the Trade Federation. For two years, it was the base of operations for Darga the Hutt until he was driven off by agents of Bail Organa under the leadership of Jedi Master Denia in 17 BBY during the Battle of Darga's palace.