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It's a dangerous town. The Knights of the Seal are supposed to keep order, but their presence doesn't help much.
— Manah, Drakengard 2

The City of Rust, according to Manah is an especially dangerous place that has not been aided by The Knights of the Seal's presence. It is where Urick the disgraced former Lieutenant of the Knights lived as the "Masked Man" and where Nowe meets Caim for the first time. It sits in the District of Shining Life According to Manah, the City of Rust was one of the few cities that was left completely untouched during the final stages of the war against the Empire. Now it is a dangerous city that you would not want to live in. The Knights of the Seal technically control the city, however their presence has done next to nothing to stem the crime in the city.

The City of Rust has become a place of crime, with the civilians of the city routinely harassed by the local Bounty Hunters. Nowe's party routinely stop by the city in order to find information pertaining to their mission and it is how Manah and Nowe managed to meet Urick and later after killing Yaha the group visits the city again to find information on the Districts and end up clearing the city's population of Bounty Hunters out in exchange for the information.