Imperial Remnants
Once the power that dominated the galaxy, the Galactic Empire's powerful reign was dealt a crippling blow only twenty-three years after its founding. The death of the Emperor that held the colossal machine of power together was killed, and his iron grip on the galaxy loosened.
Since that defeat at the Battle of Endor in 4ABY, the Empire began a slow but sure decline. The loss of Coruscant, galactic capital, and the failure of the potentially reviving Thrawn campaign further maimed the dying Empire. When even the resurrection of its feared Emperor too met with calamity, the Empire began it's retreat into it's ever diminishing stronghold, becoming ever distant from the Core Worlds they once controlled.
From the fortress world of Bastion, the Empire was able to successfully maintain an independent state, though drastically smaller than the one enjoyed in earlier days. Filled with stauch loyalists and determined colonials, the Empire retained a strong presence in the image of its galaxy-spanning self. The core of Kuat Drive Yards relocated to the shipyards of Yaga Minor, continuing to build the iconic vessels of the Empire as quickly as the stretched resources allowed, while the loyal military remained watchful.
It became clear to this last dominion of the Empire, reffered to as the Imperial Remnant by most, that they would have to evolve to survive. Casting aside the terrible grip of COMPNOR, the Remnant was free to adapt many of the qualities that had made the Rebellion the popular movement in the galaxy. Though still behind their now ruling contemporaries, the Remnant embraced the concepts of equality, justice and freedom, even allowing a little democracy into their government.
Though equality for all was hardly saught for by all, the persecution pursued by the former Galactic Empire was massively reduced. Military doctrine also changed to reflect this, with the Navy becoming far more conservative and cautious with its use of personnel. Though now comprising only a few sectors, and consequently few sector fleets, the Remnant developed fleets and other military units for specific purposes. The most prominent of these was formed from what little remained of four Core Sector Fleets, becoming the Bastion Home Defence Fleet.
Now governed by the Council of Moffs, a group of governors representing every shade of the new Galactic Empire and an Advisory Board of long serving military professionals under the Supreme Commander of the Imperial Fleet, an individual who was in effect the leader of the Imperial Remnant, the Galactic Empire eventually settled into its now diminished form.
It seemed to many that with the failure of each successive counter-attack the Remnant attempted on the New Republic, the relations between the two powers ironically became less and less hostile, to the point at which several behind the scenes deals were made. Indeed, to many the likelihood of eventual cordial relations between the two former enemies sees inevitable. Though this is not an easy reality for many of the Empire's citizens to live with, most have accepted that they can do nothing about it, and are happy to continue their lives in the relative peace the Remnant has given them.