I'd all that a town. They have a moat and seems to have enough speciality crafts for a town. And several inns.
That location is in no way hidden, unless it's far away from where people usualy are. But it looks like it has two sides of the building towards an open square, or at least wide street.
if you read this from start to finish, you can skip 75% of it all, and still be able to follow the plot and characters.
it said yuri and there were alot of hints, but nothing ever happens.