Capital City, also known as Lothal City, was the main population center and capital of Lothal, a planet in economic disrepair that had invited the Galactic Empire in return for prosperity and security. During the Imperial Era, Capital City became the center of Imperial power on Lothal and housed the Imperial Command Center and the Academy for Young Imperials. Despite the Imperial presence, various rebel and criminal groups such as the Spectres rebel cell, the Lothal resistance group, and the Gray Syndicate also operated in Capital City.
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