Merseto was a port city located to the south-west of the Imperial City of Graska. As it's moniker, the canal town, suggested, the town was built on a system of canals and riverways which helped to facilitate trade. This combined with allowances for foreign merchants to visit the city, made it a booming port town for the Kooluk Empire.
However, the stagnation that had gripped Kooluk did not exclude Merseto and it too was struggling with unemployment and economic strife, especially as goods from the Island Nations region were cut off due to the Island Liberation War, a war which most normal Merseto civilians were not even aware of.
- Gensosuikoden Kiwami Encyclopedia, page 506