From BRWiki
Domain and Regency » Government » Theocratic
A Theocratic domain is concerned primarily with religion and is run by priests. Temples are almost exclusively theocratic (although a few temples of Sera are Plutocratic and the goddess does not seem to object). Some other domains are theocratic as well, such as Ghamoura. Typically, if the temple controls the law holdings, the landed domain is very probably a theocracy whether the nobles like it or not.
The mere control of temples does not always indicate a Theocratic domain. As mentioned, some temples of Sera are plutocratic and seem more interested in making money than they do in teaching doctrine, enforcing moral teachings, or even winning converts. For example, the Nuridan Temple of Sarma seeks to expand by acquiring trade and craft operations, not proselytizing. Among Sera's temples, it is possible for the object of worship, wealth, to cause temples to operate more like guilds than temples.
Likewise in Talinie, the Northern Imperial Temple is infused with the Aristocratic values of Haelyn, including concern with war and proper stewardship of land. The leadership of the temple comes from the aristocracy with their concerns for chivalry, nobility, and discipline not only intact, but the central function of the temple. One could argue that the Northern Temple is Aristocratic, though that is going a bit far. However, Talinie itself, is properly described as a Feudal state since the regent draws strength from both Aristocratic nobles and Haelyn's priests. The Northern Imperial Temple, which does control the law of Talinie, is Theocratic, since the primary source of their Aristocratic values come not only from the day to day experiences of their noble priests, but also the thorough going attention to the doctrines of Haelyn.
Aside from the temples of Sera and Haelyn, the only other faiths that could conceivably not be theocratic is Ruornil or possibley Avani. A temple dedicated to magic, such as Ruornil's Celestial Spell, could become more Magiocratic if a wizard was the next regent and was more concerned with magic and sources than with the faith and doctrine of Ruornil.
