"There once was a woman who could fortell how long people had to live. As was common amongst people with such abilities, she kept it hidden. One day, she stepped out onto the street and was stunned to see that everyone who walked by had exactly the same amount of time left. She quickly gathered her belongings and put her hometown of Verklarung behind her."
The Forgotten City is a level from Wild Arms 4. It is also revealed to be Raquel Applegate's hometown, Verklarung (pronounced veh-kla-roon). The party ends up here (albeit separated) after the train they are on crashes. It is here that Gawn Brawdia betrays the group and is revealed to be Brionac's trump card as he helps them finally capture Yulie Ahtreide. Verklarung seemed to have been a highly industrial city, as even its ruins have plenty of metal and pipes.
While it was technically a town, it is no longer a "village" in the present day, as there are no shops to restock items or NPCs to gather information. Nor a dungeon, as there are no random encounters that take place here, even though it has as many puzzles as the game's dungeons typically do. The BGM that plays throughout this location is called Buried City (Disc 3, Track 5).