Zagros VII was a Drazi colony in Sector 801 on the border between the Centauri Republic and the Drazi Freehold. In 2259 it was the site of a Ranger training camp, though at the request of Mr Morden and his associates, Lord Refa arranged for the colony to be surrounded by Centauri blockade mines so the Shadows could come in and destroy the Ranger base without any of them escaping.
Just introduced to the new White Star ship, John Sheridan took the vessel to Zagros to help free the remaining Rangers. Since the White Star vessel was an unknown configuration to the Shadows, Sheridan used this to his advantage. After the mines were destroyed enough for the Rangers to escape, Sheridan had the Shadows chase after the White Star to Septis, the former Markab homeworld. He proceeded to use the local Jumpgate to preform the "Bonehead Maneuver", a tactic where one jump point is opened inside of another, resulting in a massive release of energy that destroyed the Shadow vessel.