The Republic of Capricornia is a young country. It was founded by settlers and soldiers returning from Australija ("Redfeets") on lands sparsely settled by Northern Balanda hunters. As a high proportion of the settlers were ethnically Northern Balanda, the new and old inhabitants integrated well with each other.
The Province of Thylacinia then fought for its independence which it declared 2006-08-01 as Republic of Capricornia. The western parts of the Province remained within the Federation of Musograd since its only town, Sv. Jelena, was not founded by Redfeets but as a Federal Marine port. That part now has been fully integrated into the Dershowo Musograd.
The Republic of Capricornia expanded on the east, annexing large parts of Sprijland and Balangrad City. The northern oblasts of the former Goralni Republic (Mountain Republic) decided to join Capricornia on 2009-10-03. Capricornia has taken a leading role within the Musanian Countries even before Federation. It has created the basis for a new common currency, the Common Wallaroo, in 2008. Also, it has taken a leading role in foreign affairs with a highly visible Unilateral Recognition policy. Thus it was only natural to give the office of High Commissioner of the Federation to the renowned Capricornian politican William Thorpe.
Capricornia also has its own postal system, Capricornia Post, which is independend from Posta Tal Musograd / PTM, the postal corporation active in most other states of the Federation. Capricornia Post has won the contract to provide the Collateral Hellenic Territories with postal services.
As about 40% of the population are ethnic Balanda (original inhabitants as well as immigrants from the Balanda Republic and Redfeet settlers with Balanda background), Balanda has been declared the 2nd official language of the Republic on 2012-01-01. The Dingo Dog, the largest newspaper of the Republic, is bilingual.
In early 2013, the PSCB rebellion in the Dershowo Musograd touched Capricornia, with some border skirmishes between CDF and Musogradij Armije units and rumors about arms provided to the PSCB by Capricornian organisations. Politically, this led to a split of the Southern Cross Movement, up to then ruling with absolute majority. The "Provisional Settlement Party" (PSP) stands for a more active settlement policy, with a view on establishing "Outstations" in the TSM and the Collateral Hellenic Territories.