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King Peleus is the ruler of a small coastal kingdom to the north of Gundobad and Kalamdar on the shores of the Great Ocean. The Kingdom of Peleus is ruled from a towering castle overlooking a small harbour, where merchant ships from other ports such as Kalamdar may dock for trade.
It appears that Peleus is related to the royal house of the Golden City of Gundobad to the south, since he calls Lothar, Warlock-Prince of that city, his "cousin". This may of course imply a more distant relationship than "first-cousin", and may even simply refer to the equal status Peleus assumes with the royal house of Gundobad.
At the time of the Trial of Kingship to determine the successor of King Gunderbock XVI of Gundobad, all was not well in the Kingdom of Peleus. Peleus had been suffering from a long, debilitating illness which had left him aged, "with misty eyes and shaking hands", as a result of which his lands had fallen into disorder and decay.