| Spoiler warning! This article contains plot details about an upcoming episode. |
Klugetown
The front of Klugetown.
Klugetown is the hub-city of the Bone Dry Desert in the (No-Longer) Mysterious South, nestled between the Caves of Conundrum and the Sea of Cloud. It is a trade city that most would choose to pass through, as compared to what the ponies up north are used to, the city is, to put it bluntly, a dump. The creatures that travel through and live within the city are not often out to make friends, and there is a heavy emphasis on business and money. The town slogan is "You want something? You gotta' give something." and everycreature enforces that as a second nature. There are only four rules that all creatures, just passing through or otherwise must follow: No weapons, no square-dance calling, no changelings, and no umbrum. (Square-dance ban removal pending.)
The Rebellion
After the 
mlp_StormKing's defeat, the denizens of Klugetown saw an opportunity to take their city for themselves. Led by a morally questionable fox creature named mlp_Mendax, mlp_Celaeno and Capper, the Klugetownians kicked their previous mole-rat Mayor Verko, who answered directly to the Storm King himself, and his lackies down to the lowest levels of the city. Mendax announced himself the new "King" and now resides in Verko's quarters at the top of the city. He's working on opening the city up to Equestrians and converting the official currency from "Storm Bucks" to the Equestrian Bit for more trade opportunity. While he wasn't "officially" elected, he wants to improve his hometown and the citizens are complacent with him.
Klugetown Locations
The Market
The market is the center of Klugetown. You could practically find any odd manner of things there including foods, magical artifacts, mysterious trinkets, plot devices, etc. and Mendax is excited at the thought of the ponies buying up such unfamiliar products out of curiosity. If you travel the back alleys, you might be able to find the info you need, some more interesting items, or a black eye if you step wrong.
The Docks
An example of one of Klugetown's many airship docks.
The only ways to get into Klugetown is through a week-long trek down into the desert, via a personal airship, or the single, official transport to the city; a repurposed Storm airship vandalized to depict the face of the new mayor. Said ship leaves every Monday from a brand new dock stationed in Appleloosa, and returns on the following Friday. Those who wish to travel in and dock their own airship in Klugetown must approach Mendax himself and pay for a license and schedule a docking-crew ahead of time. Otherwise, hopefuls will be turned away and required to enter on foot/ hoof.
Mayor's Office
Nothing fancy, the mayor's office is in a building high up over the top of the city. It consists of the office on the below floor and the upper floor that functions as a living-space and hoard for Mendax. Any complaints, inquiries, gifts, property offers and planned fist-fights in the street will be brought before him. He also has the power to rally the entire city if a particularly problematic pony threatens the relative decency of the town-order.