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The Damocles Gulf is a territory of the galaxy that contains a series of worlds belonging to the Tau Empire in the Eastern Fringe. The region is officially a part of the Imperium of Man's Lithesh Sector, but contact between the distant region and the rest of the Imperium is quite limited. The Damocles Gulf itself was a vast region of relatively empty interstellar space that cut off a region of the Eastern Fringe, including the heart of the Tau Empire, from the rest of the Eastern Fringe and the broader galaxy. It was this isolation which allowed the Tau species to advance and flourish to the point that the xenos eventually created a small stellar empire of their own in the region without interference from the Imperium of Man.
The Damocles Gulf Crusade was fought between the Tau Empire and the Imperium of Man in this region between 742.M41 and 745.M41, and was the first time the two species had met militarily. Previous to this conflict, the Tau had been unaware of the true size of the human Imperium. Despite the Ethereals' later instructions that the Damocles Gulf was to be off-limits to the Tau, the Tau Fire Caste's Commander Farsight established colonies there, known as the Farsight Enclaves, which have severed contact with the rest of the Tau Empire for unknown reasons.
- Codex: Tau Empire (6th Edition), pp. 13, 28-29, 34, 41, 52
- Codex: Tau (3rd Edition), pp. 58-60
- Apocalypse War Zone: Damocles (7th Edition), pp. 6, 8