Japanese Colony is a recurring stage in the Guilty Gear games and is an important location in the storyline. It appears as Baiken 's stage in Guilty Gear. After GGX, she shares it along with Anji Mito . It is also Chipp's ninja traning ground.
The stage changes its appearance every game and it is most likely because there are actually several Japanese colonies in the world. The stages usually feature Japanese architecture and people with their traditional clothing.
The Japanese lived the colonies after Japan was destoyed by Justice. The United Nations forbid the Japanese to leave the colonies and the ones who escape became bounties. They are forced back into the colonies sealed by a magic barrier. Ky Kiske, an IPF officer was able go into a colony only after releasing the seal, implying that Japanese colonies are also not accessible to the average person.
The Guilty Gear Xtra Manga is mostly set in a Japanese Colony. The main female character Mizuha and her grandfather lives there and encounters the main hero, Tyr . The two later met Ky Kiske who was in the colony for an investigation over the awakening Gears and the reacting Sacred Treasures.