The rise in Manhattan's mutant population, coupled with racism among normal humans, led to mutants forming their own community in a ghetto established in or around Alphabet City, Manhattan. District X was the official title for the region; however, the region was more commonly referred to as Mutant Town. Mutant Town was very similar to and served much the same purpose as other minority ghettos in New York City like Chinatown, Harlem, Little Italy or Greenwich Village. Soon the neighborhood was primarily populated by mutants, although some humans lived there as well.
The neighborhood was poor, overcrowded and violent, with a high crime rate, narcotics use, prostitution, and burglary and warring mutant gangs. It was once described as having the "highest unemployment rate in the United States, the highest rate of illiteracy and the highest severe overcrowding outside of Los Angeles." Many of its inhabitants possessed physical mutations that prevented them from blending in with human society. It also had a large underground population, inhabiting tunnels beneath the neighborhood similar to the Morlocks years before.