The State of Zephalon is a colossal, efficient nation, ruled by Joon Keskel with an even hand, and notable for its pith helmet sales, ban on automobiles, and compulsory military service. The quiet, industrious population of 2.668 billion Zephalonians are fiercely patriotic and enjoy great social equality; they tend to view other, more capitalist countries as somewhat immoral and corrupt.

The medium-sized government juggles the competing demands of Defense, Law & Order, and Healthcare. It meets to discuss matters of state in the capital city of Suurzefal. The average income tax rate is 49.0%, but much higher for the wealthy.

The very strong Zephalonian economy, worth 194 trillion Marks a year, is broadly diversified and led by the Tourism industry, with major contributions from Arms Manufacturing, Cheese Exports, and Uranium Mining. Black market activity is notable. State-owned companies are common. Average income is 72,861 Marks, and distributed extremely evenly, with little difference between the richest and poorest citizens.

Zephalon successfully hosted the Balder Olympics, a mayoral candidate backed by Joon Keskel recently won re-election with 110% of the vote, it is considered unpatriotic to learn a foreign language, and the government has cut taxes in the face of widespread tax evasion. Crime, especially youth-related, is totally unknown, thanks to a well-funded police force and progressive social policies in education and welfare. Zephalon's national animal is the Bear, which frolics freely in the nation's many lush forests, and its national religion is New Catholism.

Zephalon is ranked 82,783^rd in the world and 4,090^th in Balder for Most Developed, scoring 66.26 on the Human Development Index.