Hanyō Hidden Village

is a place where hanyō children can live together in peace. Shiori founded this village at an unknown time after meeting Inuyasha. It was intended to be a secret refuge for half-demons. The village is so remote and difficult to access that it is almost impossible for humans to reach. However, it is occasionally attacked by demons. Because of this, Shiori protects it with a barrier.

Half-demons are often brought to this village as children so that they can be cared for and learn to read, write and do arithmetic. In addition, they mature and become stronger so that they can survive in the world outside the village. Shiori regularly takes in children who have to leave the village when they reach teenage years. From this age on, most half-demons can easily fend off attacking humans and weaker demons.

History
Setsuna was separated from her sister Towa as a young girl in a forest fire. Jaken and A-Un brought her to this village shortly afterwards. There she met Shiori and befriended Fūta and Raita. During her childhood, she also learned to fight through instructions left for her.

Six years later, at the age of ten, she received a letter inviting her to live in the village of Kaede, where she was born. However, life there proved difficult for Setsuna because bandits regularly attacked the village. Setsuna wanted to kill them, but Kaede forbade her, so Setsuna returned to the village.

A few months later, Gaga Gozen attacked the village. Together with other yōkais, he waited for Shiori to lose her strength during a rare total solar eclipse. Fūta, Raita and Setsuna fended off the attacks of the yōkai with the help of Miroku, but although they could destroy the weaker demons, Gaga Gozen was too strong for them. However, Setsuna destroyed him when she transformed into a pure yōkai.

Shortly afterwards, she left the village again. Fūta and Raita, who said goodbye to her, were told by Shiori that they too would have to go one day. Shiori asked Setsuna, should she ever find a hanyō child in need, to bring them to this village.

In episode 20, Setsuna tells this story to her sister Towa. Shortly thereafter, two demons attack the village, and Setsuna defeats and mutilates them so that they flee again. Towa and Setsuna fly away again, and Shiori stands on a cliff and thanks Setsuna.

Trivia

 * The village becomes vulnerable when Shiori turns human and loses the power to create a barrier.
 * Demons seek out the village in hopes of eating hanyō, who are considered a delicacy in comparison to humans.
 * Although many either do not know of the village or consider it out of the way, records existed referring to how and when the guardian would lose her powers.