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Duchies are large territories that have been given to a Duke by a King or Queen. If a Duke commits treasonous activity towards their monarch, that monarch may attempt to take back the lands by force. In order to be able to run their Duchies more efficiently, Dukes will delegate Counties to Counts.
Duchies are one of the predefined forms of civic rule on Elyria. See the following page for a full overview: Government.