This area is unlocked after completing the quest: The Engine, available at level 9 or above. It is the home of Sopica, an artist, and you can craft items at her Studio. A sheep lives there with her. You can collect Wool from it. You can build a Semaphore to collect 30 rocks every 2 hours, another Studio, and after completing a short series of quests, an Excavation Site, which requires completing quests.