In Episode 41 of the anime series, a story is told in flashback about how a small city near the Madella Valley was overrun by Moo's troops. In this city lived an unamed family who took in Jagd Hound when he was a puppy, and in return he took care of the father's baby when their home was destroyed. The city sits on the edge of the Trigonon Forest, and is made of clay buildings.
Shinobi is a village that fits this description, set near the Papas Alps. It is one of the possible ranch locations offered to you in My Monster Rancher, and it seems that after rebuilding the city from Moo's attack, walls were constructed around the entire thing.