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Underground
Negachamber

Say goodbye to the daylight.

Stuck somewhere between Heaven and Hell are the cave systems that make up the Warren. When the island was first found it had a natural system of caves from the limestone in the area and the magma tubes from the now dormant volcano nearby. Sometime in about 200bc The last big eruption blocked off the valley and created the systems of lakes as well as a platue of lava now located to the souh. It's commonly beleive that this was kept intact by upwelling afterwords in smaller eruptions before the dominant period started.
The idea of being's living in these tubes when a new eruption could poteinally wipe the whole settlement sounds absurd but thats where the remaining tribe of Oni or Japanese Goblins lives. In the conditions set forth by the new owner the oni would be protected by the Castle's owner as long as they became his servants. This continues today as the goblins keep unwanted visitors from exploring the island. This includes a small tribe of Kappa living in the lake around the castle. While thought of as superstition by locals those who actively spend time on the grounds quickly learn not to stay outside the castle after dark. The castle it's self is off limits to the tribes and all curious oni venturing into it are either killed and/or consumed by the guardians or chased back by Naomi's droids.
The Warrens extend throughout the island and under it deep into the valley. It's in part to the work the Oni have one in making new tunnels and expanding the current ones. The problem of over population tends to be a constant worry and steps are taken to periodicly to wipe out sections of the tribe. It sounds inhumane but it is better then locals finding out and completely wiping out the tribes living there.

The word Oni actually covers a larger expanse of  creatures then just the western idea of Goblins. It covers what would be considered Orges and trolls and a few things not known to the wesr. It's evolved to a general meaning of monster like Kaiju. The typical Oni or goblin had bright hair like Red long noses and a horn in it's head. The fact the first westerns they met also had long noses and some with blonde or red hair didn't quite help.
The Kappa or water spirite was a dark brown skinned being with webbed feet and hands. In their heads was a depression that it keeps water in. They were mostly non violent  yet mischeivious tricksters who greatest joy was to steal your innard through your anus. To ward them off if you met one you'd bow. When the kappa bowed the water in it's bowl head would spill out and it would then rush back to refill it. Truthfully most of legend is correct so only the foolish ever are harmed by them. If you remeber your Japanese manners you don't have a thing to worry about.
The Tengu were a type of Oni to live in forests and mountains. They had long noses and dislike of all humans. So as humans made their way into  thier areas they ran away rather then deal with them and currently few are known to exist let alone show themselves. Their numbers are strongest along the still semi undeveloped northside of the Main island, Honshu.