Kentucky, Tennessee, West Virginia
Second only to Free Colorado as a home for smugglers and pirates, Appalachia's airspace is one of the most dangerous in North America, and traveling on the ground isn't much safer for the unprepared. While officially formed relatively late in the process of the United States's disintegration (May, 1931), the states that would later become Appalachian Territory already engaged in armed conflicts against other states as early as 1924, and were heavily involved in the creation of the Outer Banks.
Surrounded by Dixie, the ISA, the Outer Banks, the Empire State, and Columbia, there's good reason for the airspace over the Allegheny portion of the country to be called "Hell's Heights." The Confederation of Dixie in particular would like to clamp down on the illegal alcohol trade running through Appalachia, and it is known that Appalachia has appealed to the Empire State for military aid. Rumors that Appalachian pirates and raiders preferentially target the ISA as part of this appeal are difficult to confirm.
Recent Events Edit
Although Appalachia formally denies any involvement with the recent attack on Birmingham's industrial facilities, in truth, enough of the nation was itching for a fight anyway to be willing to take advantage of the opportunity. Appalachia's conversations with the Empire State have become much more formalized, leading the ISA and others concerned that a formal military alliance could strangle trade for much of the region.
Magic and DemographicsEdit
There is little in the way of organized, institutional magic in Appalachian Territory, although the hollers of the mountains are home to shamans and stranger things besides. Like most of North America, Appalachia is largely human and epesi. Unsurprisingly, a moderately-sized dwarf immigrant community has formed over the last century, largely from the mountains of Europe (though dwarves from the Apennines are noticeably absent). While respected as hard workers, they are considered a bit difficult to work with (the Alps, the Pyrenees) or shunned for religious "deviance" (the Carpathians).