The Confederation of Dixie is a loose collection of the staunchest Regionalist states on the continent. The main trait the nation-states of the New South have in common is a commitment to state government. There are few national laws, with most governing and regulation on a state level. Some of the Confederate states are wet, others dry, still others "damp" (allowing beer and wine, but no liquor).

Most national cooperation is directed toward defense and militia support, although each state maintains its own militias. Even this is largely a matter of state control, as the 1935 air battles between Alabama and Louisiana demonstrates; most of the Confederacy maintained relations with Louisiana throughout the conflict. Indeed, several Confederate states maintain state consulates parallel to the Confederate embassies.

Dixie has become something of an international player, courting alliances with the British (which provided the first Confederacy some support in the days of the American Civil War). As a result, British aircraft and munitions manufacturers have helped turn the Dixie militias into serious fighting forces. While foreign aid is still relatively modest, Dixie forces are generally well-equipped and effective.

Dixie’s government is based largely on the original Confederate ruling structure; individual states within the Confederation are clearly more powerful than the central government. The current President of the Confederacy, Robert Turner (a charismatic Southern Gentleman from Mississippi) has managed to forge strong political ties between the member states, though his leadership was tested in 1935, when Alabama launched itself into conflict with Louisiana.