Traverse Town

Traverse Town is the first playable world in Kingdom Hearts game outside of Destiny Islands. A quaint little town, Traverse Town is made up of destroyed worlds, similar to End of the World. Survivors of destroyed world can take shelter here. Squall Leonhart, Yuffie, Aerith, Cid and Merlin from Hollow Bastion, the Fairy Godmother, Pongo & Perdita, Pinocchio and Geppetto are notable residents. Huey, Dewey and Louie own the item shop, while Cid owns the accesory shop and later sells Gummi Blocks. Merlin allows Sora to train with his magic, and the Fairy Godmother unlocks Summons. The town's Keyhole is located in the Second District's water fountain.

Kingdom Hearts
After the destruction of Destiny Islands, Sora ends up in Traverse Town. He is awoke by Pluto and ventures out into the town, eventually meeting Leon whom he fights. Sora passes out and finds himself in a hotel where he meets Yuffie and learns about the Keyblade and the Heartless, while next door, Aerith explains the same to Donald and Goofy. Heartless attack, causing Sora to flee. Donald and Goofy are blown off a balcony and land on Sora. The three battle and defeat a Guard Armor Heartless. The three become companions and leave to find Riku, Kairi and King Mickey. They return multiple times, Sora reuniting with Riku and sealing the Keyhole, meeting Merlin and the Fairy Godmother, and also when a saved Kairi gives Sora her lucky charm. When the worlds are restored after the defeat of Ansem, the fate of Traverse Town is unknown, as its residents return to their worlds.

Chain of Memories
A memory-created version of Traverse Town is the first world Sora visits while in Castle Oblivion. Leon and the others do not recognise Sora, but help him fight Heartless.

Kingdom Hearts: Coded
Traverse Town has been confirmed to appear in the new game, Kingdom Hearts: Coded. A virtual Sora will meet King Mickey here.

The Town's Structure
Traverse Town is similar to a Victorian-age town. It is divided into three districts. The First District is the most peaceful one, without the presence of Heartless. Notable places are the accessory shop, run by Cid; the item shop run by Huey, Dewey and Louie, a synthesizing shop run by Moogles on top of Cid's shop, a restaurant with automatically self-lighting candles, and Geppetto's house.

The Second District is infested with Heartless, but is relatively peaceful. Notable locations include the clock workshop and the clock tower, a rather pointless shoe shop, and the home of Pongo and Perdita. The hotel here is often invaded by Heartless (and the hotel clerk hides behind some curtains). Behind the hotel is a back alley which leads to the sewers and a secret cave where Leon does training. Sora recieves Kairi's lucky charm here, as well as the Oathkeeper Keyblade.

The Third District is overrun with Heartless. The Keyhole is located here in the water fountain. Notable locations include a small house where Leon, Yuffie and Aerith seem to live, Merlin's house hidden in a dark chamber and a water fountain hiding the Keyhole.