The Federal Military Republic of South Waterford is a gargantuan, efficient nation, ruled by General Harman Teasedale with an iron fist, and renowned for its multi-spousal wedding ceremonies, punitive income tax rates, and stringent health and safety legislation. The hard-nosed, hard-working, cynical, devout population of 15.238 billion Waterfordians are ruled by a mostly-benevolent dictator, who grants the populace the freedom to live their own lives but watches carefully for anyone to slip up.

The medium-sized, corrupt, well-organized government is primarily concerned with Defense, although Healthcare, Law & Order, and Education are also considered important, while International Aid and Spirituality receive no funds. It meets to discuss matters of state in the capital city of Potsdam. The average income tax rate is 70.0%, and even higher for the wealthy.

The frighteningly efficient South Waterfordian economy, worth a remarkable 2,244 trillion Vyrkar Dollars a year, is dominated by the Arms Manufacturing industry, with significant contributions from Information Technology, Retail, and Book Publishing. Black market activity is rampant. State-owned companies are common. Average income is an impressive 147,278 Vyrkar Dollars, and distributed extremely evenly, with little difference between the richest and poorest citizens.

The military has gone fission for more funding, the navy's new flotilla is gonna be a thrilla, enemy agents are generally eliminated with extreme prejudice, and you can bet your bottom dollar that gambling will cost you an arm and a leg. Crime, especially youth-related, is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. South Waterford's national animal is the Chinese Pug, which frolics freely in the nation's many lush forests, and its national religion is Church of the Holy Light.

South Waterford is ranked 25,052^nd in the world and 6^th in Union of Allied States for Most Corrupt Governments, with 84.48 kickbacks per hour.