Kolona was a port town in the New World, between the town of New Arcadia and Serena. The port town's major sources of income was whaling and smuggling. The Trade Prince Thelonious, having been resurrected at some point after the Water Barons assassinated him, returned to the New World and built a personal fortress in the city protected by steam powered robots. The town was the center of the Fireheart trade in colonies.

Following New Arcadia declaring independence from the Empire, the Water Barons politely strong armed the city's mayor into bringing the city in the rebel camp. After taking control of Kolona they killed a green dragon that ran the underworld in the city and replaced it with their old ally, the goblin chieftain Balgron the Fat.