How can I create a sector?
Oh I just learned this yesterday.
1. Research Improved Command and Control in (Logistics?)
2. Build a Sector Command on a colony (or in my case starting planet)
3. Assign a Sector Governor
4. Open the Sector Management window, select a Sector, and then on the lower right hand pane, there will be a list of available systems. Select the system. The upper right hand pane shows how many systems that sector can add and how many jumps away from the sector command they can be.
5. Close all the windows, select a colony in the system you put in the sector, open the summary/economics window. At the top it should give the Colony Governor information and underneath that the Sector Governor information.