The "Crimson Skies" universe is set in an alternate history of the year 1937. According to the game's backstory, factors such as the growing strength of the "Regionalist Party", the division between "wet" and "dry" states, and a quarantine caused by an Influenza outbreak resulted in a general shift in power from federal to state and local levels. After the Wall Street Crash of '29, states began seceding from the U.S. A number of independent nation-states form from the fractured United States; hostilities between these sovereignties eventually escalate into outright war.