Beta Hydri is a permit-locked system that has played an important role in the history of the Federation. The permit can only be obtained by achieving the Federal Navy rank of Chief Petty Officer.

The system was first colonized between 2190 and 2230 and was one of the original signatories of the Federal Accord of 2242, making it a founding member of the Federation.

In 2323, under the command of Admiral Richard Morgan, a fleet was assembled at Beta Hydri to attack Achenar. However, the attack was foiled, and in 2325, what is now remembered as the "Great Battle of Liberation," Achenar forced the Federation fleet to retreat to Beta Hydri. There is a Tourist Beacon commemorating the event.

Beta Hydri remains an important system for the Federation, and there is a military installation about the planet Homeworld that serves as a dry dock for the manufacture of Faragut Capital ships.

Beta Hydri is also the commercial and political headquarters of wealthy entrepreneur and presidential candidate Zachary Rackham. Rackham Capital Investments owns a majority of shares in the Beta Hydri Corporation, the system's controlling faction. As a member of its board of directors, Rackham has a role in governing the system. The trillionaire Rackham has many commercial interests in the system, such as Rackham's Spire, Rackham's Casino, Rackham's Spaceframes, Rackham's Rooms, MacArthur Mining Ltd, as well as Rackham Capital Investments.

The moons 7b and 7c have silicate vapor gas vents, and there is a Tourist Beacon on the surface of 7c.

There is also a tourist beacon orbiting the planet Endl commemorating the assassination of Dr. Joreb Innitu in 3251. He was rumored to have been assassinated at the request of both the Federation and Imperial military allegedly because of new theories about the war between humans and Thargoids.