The Jarii Coalition is a small secessionist "nation" comprised of the Coa Jarii, Saan Jarii, and Jzung Jarii. All three are offshoots of the Sha'an-Tai, and their solar system lies inside the Sha'an-Tai Federation.
The 3 member worlds were originally created as penal colonies for the "worst of the worst" in the Sha'an-Tai Federation. Political pressures eliminated the death penalty, so the idea of penal colonies became a popular and convenient way to remove dangerous prisoners from society without (directly) killing them.
A planetary system off the main trade routes was chosen as the place to which prisoners would be exiled. The system contained three barely-habitable worlds; one at the outer edge of the habitable zone, and a binary pair at the inner edge of the habitable zone. All three had atmospheres and native life capable of sustaining Sha'an-Tai.
The outer planet, dubbed Canaad, was covered in ice over 75% of it's surface, with only a narrow band around the equator getting warm enough to contain liquid water. The inner planets--which orbited each other--were exceedingly hot, with only the poles being cool enough for permanent settlement. Vintnor's poles were covered in thick vegetation, while Daemos was mostly dessert with only thin strips of arable land along the oceans.
The colonies operated for about 100 years before budgetary and political pressures caused them to be abandoned by the Federation approximately 250 years ago.
As often happens, the prisoners exiled to these planets created their own communities and cultures and started to thrive, despite the harsh conditions. Commerce, industry, science, and the arts started to flourish. Things were difficult in the early years, but by the time the Federation abandoned the worlds as prisons, the colonists had developed stable and productive communities.
As science and commerce progressed, communication, and eventually travel between the worlds did also. The unique situation of Vintnor and Daemos made communication easy and travel practical. They formed a close association and began trading. As space travel became more practical, Canaad was added to the mix. They had already been trading information, and had formed close associations with the inner worlds.
Though the Federation had abandoned the worlds in all practical sense, they still belong under its jurisdiction. In recent years, the Coalition has used the apathy of the Federation as a de facto agrement of their sovereign status. They have made contact with the Garen Alliance and worlds within the Zone of Contention, and have started political overtures to the Kymrian Empire.