Originally, it was a group of twelve German-speaking traction cities who joined together to resist the advance of the Green Storm in destroying all traction cities. The Green Storm were seeming to win until many more cities joined the Traktionstadtsgesellschaft. This led to a stalemate with neither side willing to give. Cities who did not join the Traktionstadtsgellschaft often sent money or supplies to help in the war, and also profited from selling the alliance weapons. The cities agreed not to prey on each other until the war was over, though some less-ethical towns such as Harrowbarrow continued hunting for prey as they thought the Traktionstadtsgesellschaft would turn them soft.
The Traktionstadtsgesellschaft was shattered when the Stalker Fang attacked and destroyed most of it's bigger cities with ODIN. With the end of the war and the deaths of the Stalker Fang and General Jiang Xiang Naga, the remnants of the Traktionstadtsgesellschaft settled down and became static, as per the treaty struck between the leader of the newly reformed Anti-Traction League Oenone Zero and Kriegsmarshal Von Kobold to cease fighting forever.