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Outlanders are industrial-tech level factions. There are two types of outlanders, the civil outlanders, which start out neutral, and rough outlanders, which start out hostile.
"These people have lived here for decades or centuries, and have lost most of the technology that brought them to this world. They usually work with simple machinery and defend themselves with advanced gunpowder weapons. They are concerned with the practical matters of trade, trust and survival." - In-Game Description
Outlanders use the same equipment and technology as pirates, but do not behave the same. Unlike Pirates, Outlanders can be made into allies by sending gifts or releasing prisoners. Due to their similarity to your colony they can be considered the standard faction. They often use similar equipment and tactics as normal pirates, but rarely use high level gear such as sniper rifles. Be nice to them and you will be rewarded, but anger them and you basically have another pirate group, except they can be negotiated with. The name of Outlander factions are generally composed of "name" or "Confederation, Alliance, Pan-global Federation (or other similar themed adjectives) of "Name"."
There are two primary types of outlanders. They differ in their description and their relations with player and other factions, but are otherwise identical.
Civil outlander union
"This particular group holds civil behavior in high regard."
Civil outlander unions always start off neutral. This type of faction has a nautral goodwill range from -50 to 50. If goodwill is over 50, it will fall by 0.4 per day. If goodwill is under -50, it will rise by 0.2 per day.
Rough outlander union
"This particular group has a streak of barbarity in them."
Rough outlander unions always start off hostile towards your colonists, as well as all other factions. This type of faction has a natural goodwill range from -100 to -80. If goodwill is over -80, it will fall by 0.4 per day. If goodwill is under -100, it will rise by 0.2.
If neutral or allied, these units show up as traders or allies. If hostile, they show up as raiders.
These elite units join outlanders in their ranks in the mid-to-late game.