This area is unlocked soon after you start the game. It is the the home of Nyok and you can craft items at Nyok's House You can also collect wood here, and collect items like Red Feathers, Mushrooms, Toadstools, and Tulips. Here you can build Trees to collect Wood from.
You can also build a Water Mill to collect water and a Fisherman's Hut to fish in the river. (You can catch 3 fish every 2 hours) These buildings are only available when you need to build them to complete a quest. There is also a Log Camp which will enable you to get 30 wood every 30 minutes and you can build an additional Nyok's House.