When Morytania was still a happy place before the invasion by Vampryes, Neotania was discovered and quickly settled on. It was not a very beautiful island - most of it was unproductive heathland, arid soil, or crumbly dirt in which nothing could be grown. Nevertheless, it was a useful relay point for trading convoys or expeditions to the south, and for this reason it grew. After a decade, a vast number of old traders and adventurers had settled on the island, and developers were jumping on the low prices and constructing huge areas of houses. People moved en masse, and businesses and industries soon followed. Not long after, lucrative trading deals were set up with the rest of the world, particularly Meiyerditch.
However, when the God Wars began, Neotania took a turn for the worse. Many sides stationed their navies in the island's many ports, more often than not several at once. As such, skirmishes often broke out, causing sizeable damage to buildings and causing many injuries. Neotania remained strictly neutral however, and did not want to compromise this which would result in their forced entry to the God Wars. This caused the people of Neotania a lose-lose situation: join the God Wars to almost definite loss and destruction, or stay out and face an equal chance of destruction.
Eventually, however, they were both saved and cursed - the invasion of Morytania and the capitulation of Meiyerditch severed most of Neotania's ties with the outside world. This meant that the constant positioning of armies and navies on their island halted, but it also meant that their main trading partner and therefore their lifeline was severed. Neotania quickly spiralled from a well-off country to a bankrupt, dying dystopia, but for it's people there was no way off, as there were practically no ships left.
The following year was a freakishly stormy year, and the constant buffeting by tides and the weather destroyed much of the island's buildings and coastal defences, which in turn led to even more damage. Many died, and even more were injured, maimed or mauled. Three years after their abandonment the population of Neotania had dropped by 10%.
Gradually, Neotania recovered, but in a much worse state. Proper food was a novelty, as most of the time the citizens had little more to eat than algae. Buildings were patched up with whatever could be salvaged, such as driftwood or seaweed. The city was falling apart as mould gripped it, but it's people kept on going as best they could. After a long while, magic of sorts was discovered, but unfortunatly early attempts to use it went disastrously wrong, creating a plague that slowly mutated those afflicted into zombies. After this, magic was quickly shunned, and those who had not been affected by the plague took to science. After many difficult years the secret of steam was discovered, which was applied to create a small generator for the island, allowing them electricity. This led to an obsession, resulting in so many lights being installed Neotania was held in perpetual daylight, even at night. However, a more practical use was found in the way of cybernetics of a rudimentary sort. Many people were augmented using steam-powered limbs and organs, eventually resulting in two distinct races: the Zombies and the Steamborgs. At first, there was intense rivalry, but over time the two blended.