The Federation of Watersdeep is a mammoth, socially progressive nation, renowned for its irreverence towards religion. The hard-nosed population of 5.03 billion Watersdeepians have some civil rights, but not too many, enjoy the freedom to spend their money however they like, to a point, and take part in free and open elections, although not too often.

The medium-sized government juggles the competing demands of Defense, Welfare, and Law & Order. The average income tax rate is 24.6%, but much higher for the wealthy.

The Watersdeepian economy, worth 198 trillion Delta Eagles a year, is fairly diversified and led by the Uranium Mining industry, with major contributions from Arms Manufacturing, Information Technology, and Furniture Restoration. State-owned companies are reasonably common. Average income is 39,292 Delta Eagles, and evenly distributed, with the richest citizens earning only 2.7 times as much as the poorest.

Crowds of flag-burning protesters tend to accidentally become crowds of burning protesters, the bonfire of the old paper records can be seen for miles around Watersdeep City, all screens are equal but some are more equal than others, and a large-scale revitalization of the education system is underway. Crime is relatively low, thanks to a capable police force and progressive social policies in education and welfare. Watersdeep's national animal is the Kitsune.

Watersdeep is ranked 90,425^th in the world and 1^st in Athena for Least Corrupt Governments, with 93.58 percentage of bribes refused.