During the Hextech Revolution, Bandle City used pyrikhos to refuel the Mothership and thereby create a moonbase. It was on that base that they spotted a continent to the west of Valoran that had never before been discovered. Previously, a spell-screen of unknown origins had hid it from Valoran, but it did not prevent it from being viewed from space. The League orders for the overall fate of the new contient, dubbed Nyroth, to be decided by the winner of a League dispute. Bilgewater and the Freljord enter the dispute, hoping to obtain resources, influence, and power from the new continent. The Shadow Isles enters, seeking to bring undeath to the new continent. There were many whispers in the Institute of War of a rumor that the League was offering Nyroth up as a "sacraficial lamp" to persuade the undead from damaging Valoran. Ionia joined hoping to protect the natives from plundering and colonization from Valoran, and try to maintain the balance of power.
The mainland was unihabbitable to any of the native Nyrothians, who lived on islands surrounding it, due to a Mega-Nexus in the center of the continent unleashing energy toxic to them; Valorians on the other hand seemed to be immune to the effects of the Mega-Nexus, presumably an affect of the Runewars. Bilgewater remained dominate throughout most of the dispute and gained control over several of the islands surrounding the continent as well as the status of emissary to Nyroth. The Freljord, Ionia, and the Shadow Isles obtained control over only a few islands each, and did some exploration of the mainland.
On the Southeastern island of Krocylea, both the Shadow Isles and the Freljord we given shared control. The island had two identical nations, each controling half the island and severely hated the other. One nation asked the Freljord to help overthrow their rival nation, while the other asked the Shadow Isles for the same. When the Shadow Isles agreed to the natives who went to them for help, the Freljord decided to defend the native nation who had sought there help and called upon Ionia for aid, who obliged. Both the Freljord and Shadow Isles invoked upon leyline magic channeled in the island's Nexus, a violation of the League's ban of destructive rune magic. The Shadow Isles' spell did damage to both sides, while the Freljord lost control of its, and caused a void rift to rip open on the island. Ionia, the Freljord, Bilgewater, and surprisingly the Shadow Isles, who had previously allied with the Void as part of the Discord, allied together and desimated the Void's forces. The Shadow Isles then attacked the natives of the island, intent on bringing them undeath. The natives, the Freljord, and Ionia all united in a defense against the massive force of the undead, Bilgewater committed to only a naval bombardment on the Shadow Isles' army. The native troops, Ionia's armies, and most of Freljord's warriors were wiped out, but a mighty cavalry charge from the Winter's Claw's boar riders allowed them to fend of the Shadow Isles at the last moments of battle. The League sanctioned the Freljord and Shadow Isles for their destructive use of the leyline magic, and Bilgewater, as the emisarry to Nyroth, moved for the island to be taken away from both the Freljord and Shadow Isles and placed under League control, which was granted.
The Freljord was given access to the Mega-Nexus in the center of the Nyrothian continent and control of its fate by emerging victorious in a grand tournament commissied by the League. It chose to restore the Mega-Nexus and make the mainland inhabitable to the natives once again. The shockwaves of this restoration caused a few of the surrounding islands to crash into the mainland, along with affects being felt within Valoran.
Ionia ultimately won the arc despite being an underdog for the majority of it. It set up a government on the mainland for the Natives, that it was to oversee and guide. However, some of the more advanced island nations that Bilgewater had encountered asked for Bilgewater to help support them in creating a Northern Confederation that would let them be independent of Ionia and other island nations they did not wish to deal with. Bilgewater agreed to support them and, with the influence it had gained in Nyroth and maritime powers, helped ensure the Northern Confederation would survive against any actions Ionia might take to force them into the governement Ionia had created.