This is the Barrens. In accordance with the ValuSelu Articles, Yak'koli is obligated to provide food, shelter, and infrastructure for all of its citizens, even the IdPari, who have denied the obligations of Pact citizenry.
The Barrens is where these people go, end up, or are sent.
The Barrens is a subterrenean city sprawling up a cliffside, with zig-zagging stairs and buildings carved into the coral. The time and love of families living in it has brought comfort to what might otherwise be a rundown hodgepodge of ad-hoc constructions.
If you're here on business, don't be suspicious or flashy about it. Dress simple, keep a stoic face, and keep your eyes on where you're going. You're an outsider, and outsiders
The Barrens began as a Rutas
hive. As Yak'kolithar
grew, it became necessary to clear it out the hive for the sake of public safety, which revealed to Thon that the corralums the hive were built into were full of fragments of the ventricle's chandelier.
From there, the ventricle itself was slowly hollowed out, "softer" hive coral giving way to the hard ventricle walls as they excavated the earth to reinforce the island of the fallen chandelier and to fertilize the surface (which would later be the orchards of Yak'kolithar). They dug it out from above and below, but deigned to not let the two meet (so that the ventricle wouldn't collapse).
With so much infrastructure and space remaining after the operation, it became an ideal place to send their IdPari—Dishonored, Exiled, K'khriak (Cowards who refuse to serve) and "Willfully Indigent".
People have been living in the Barrens for a long time now, and space is limited. Although Yak'kolithar has fulfilled its agreement to provide new space for IdPari to move to, they provided it alongside the southern edge of the Expo, with worse infrastructural support than provided to the Barrens, on a cliff face routinely baked by the sun and blistered by the wind. The people of the Barrens demand equipment, architects, builders, and materials bore into the Barren's southern wall (where their homes are built into) and extend their region, and can be found protesting in the streets during the festival, but they have no representation within the council, and most citizens are used to the rhetoric and used to responding with "Nobody is allowed to drill into the ventricle wall, lest it damage both ventricles. Stop whining, you could go live up on the Roost or in the Trough."