The Septinsular Republic came into existence as a response to the changing political landscape in the Mediterranean during the late 18th century. Following the French Revolution, ideas of liberty and governance began spreading through Europe, including the Ionian Islands, which were under the control of the Venetian Republic before being ceded to France in 1797. The new political structure allowed local leaders to unite the seven islands under a republican constitution, promoting local governance while attempting to assert autonomy against larger powers such as the Ottoman Empire and the maritime nations of Europe.

The republic was officially recognized as a result of the Treaty of Paris in 1800, which concluded the significant power struggles in the region. A unique feature of the Septinsular Republic was the establishment of a shared governing body, consisting of representatives from the seven islands, ensuring that local interests were represented in the decision-making process. This was a pioneering move in a time when most political arrangements in the Mediterranean were dominated by monarchies and empires.

The government's main challenges included political stability, economic cohesion, and the necessity of maintaining peace with external powers. Initially, the republic functioned relatively well, with efforts to enhance trade and cultural exchange among the islands. However, internal strife and external influences would eventually challenge its survival, leading to its integration into the British Empire in the early 19th century, changing the political climate in the region significantly.