A faction’s territory consists of all land nearer to one of its land bases on the same continent than to anyone else’s. Territorial waters consist of all sea areas nearer to one of a faction’s sea bases (in the same ocean) than to any other faction’s. Territory shifts during the course of the game as bases are built, conquered, and destroyed.
Faction leaders may take offense if other factions move units into their territory, particularly if they have signed a Treaty of Friendship.
Territory never extends more than seven squares from a land base, or three from a sea base.