The planet Pelayo is a full member of the Eridani Alliance and acts as the Alliance capital. As is normal with the senior alliance members Pelayo is a fully independent world. Pelayo maintains the full array of planetary government offices and functions as well as those necessary to the Eridani Alliance.

Pelayo appoints three members to the Alliance Council. Pelayo itself is a Charismatic Oligarchy with the world divided amongst senior families or clans. The heads of the seniors families, ie those of baronial rank or higher automatically have a seat on the Pelayon Council. It is this council which appoints the local members of the Alliance Council. These representatives usually, but not always, come from the ruling families.

Executive and Legislative authority is vested in the Pelayon Council. A nominally independent Judicial Council also exists. Membership of this council is considered a great honour but members must renounce all ties with family/clan and business to ensure impartiality.

Some disputes are not brought before the judiciary as Pelayo, as is common with other worlds within the Eridani Alliance is a duelling culture and some disputes are resolved by duels either to first blood or sometimes to death.

Duels involving heads of houses, or their designated heirs, as well as serving members in the military in times of emergency require the permission of the Judicial Council before the duel can be carried out.