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Gwynedd is a backwater system with virtually no strategic value in the Terran-Kilrathi War. Therefore, it is safe to assume that it was among the most peaceful colonies on the frontier. It is moderately populated and hosts Caernarvon Station, an outpost for In-System Security. Gwynedd saw no action in the War prior to the year 2665.
Gwynedd is notable for being the system in which disgraced Captain Christopher Blair was stationed after his unjust conviction for negligence during the loss of the TCS Tiger's Claw. He served on Caernarvon Station flying patrols and escorting garbage shuttles from 2656 to 2665. He served alongside fellow pilot Elizabeth Norwood.
During the year 2665, the TCS Concordia was ambushed in this system by Kilrathi forces during the Enigma Sector Campaign. Blair and Norwood were able to rout the Kilrathi forces and assisted the Concordia in clearing out the invading forces. However, Blair was forced to join the Concordia in its escape from Gwynedd when he landed prior to their hyperspace jump. To add to this, Norwood lost her life defending the vessel. Gwynedd was largely undisturbed for the remainder of the War.