I speak of the small town that sprung up around an Oblivion gate, or more aptly, the town that grew from a Legion camp that an Oblivion gate popped up in the middle of.
It was mentioned in the books: http://www.imperial-library.info/content/infernal-city-lore-notes. Page 119 onwards, in Cyrodiil.
The hints we have are that they were south of the Imperial City, in the Great Forest area, and could call up help from Pell's Gate (the only settlement nearby named). The gate opened up on cobbles, perhaps, as the town square is mostly stone, and warped and cracked by heat. Or it could simply be that the 'square' is decribing the ground around a gate.
I looked to see if I could 'find' any Obvious gates ont he game map, and it could very well be the one west of Pell's Gate. Infact thats the only one I could see nearby, especially when we consider how scaled down things are. It could be very well its simply supposed to be in a part of Cyrodiil we don't see due to scale, as I believe is most likely.
Where do you think?
The reason I ask, is that for my current playthrough to be lore correct, the 'town' needs to exist after the MQ. So i'm going to figure out how to add things to the world, and add a lot of tents, a few wooden shacks, and so forth around an Oblivion Gates remnants. It should be sufficent for the 'start' of the town. It never states its massive in the books as far as i recall.