From Dragon Eye Atlas

Similar to a Federation, a principality is a union of independent states to form a larger realm. Unlike the federation, the states within a principality give up a larger amount of sovereignty, with a council of local rulers deciding upon tax laws, military rules, drafts, foreign policy and some parts of domestic policy. Each member of the principality has agreed to abide by the majority decisions made in this council, as long as it has itself a seat on said council.

List of Principalities

 Dominant raceDominant cultureDominant religion
Hill Dwarves
Kiswaili Faith