Night City is a megacity located in the Free State of North California. While the city is still located on American soil, it is beyond the reach of any legal or judicial system that governs the rest of the country. The city is ruled by massive corporations at the highest level, but the streets are mainly owned by warring gangs.
Night City was initially founded by the tech giant Richard Night, the CEO of Night International. He originally hoped for the city to exist as a perfect entity, which would allow those within it to use technology improve the city itself and their own lives, working together to achieve the goal of social progress. After Night's death, a series of wars and skirmishes broke out between rival gangs vying for power. This led the city down a dark path that distorted Night's vision, eventually becoming the haven for violence and corruption that it is today.
As was seen on the Night City Metro map in the E3 reveal trailer, there are 6 main districts in Night City:
Night City itself is surrounded by another area that players can explore, known as the Badlands.