Hanyō Hidden Village

is a place where hanyō-children lived together in peace. Shiori founded this village at an unknown time. It was supposed 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 should be brought to this village as children so that they can learn to read, write and do arithmetic there. In addition, they should also 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 quickly met Shiori and befriended Fūta and Raita. During her childhood, she also learned to fight.

Six years later, 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. And so, Setsuna returned to this village.

A few months later, Gaga Gozen attacked the village. Together with other yōkais, he waited for Shiori to lose her strength on the 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 him 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 become vulnerable every year and a half, due to a solar eclipse causing Shiori to turn human and lose 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.