Bestine IV was colonized by traders traveling along the Corellian Trade Spine. Many of the early colonies failed. One such colony eventually ended up on Tatooine and founded Bestine City. This eventually just caused a lot of confusion. By the time of the Clone Wars, Bestine IV had a series of stable colonies, and sided with the CIS, in order to try and gain independence. The Empire punished this action by using the planet as a shipyard and kicking everyone out.