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Flachstadt is the second largest city in Untergrund and the most populous city in the southern half. It is Untergrund's prominent gateway city, dealing with surface relations and trade with Vatharond. The city is notable for being the first city humans were allowed inside.
Flachstadt has a large foreign quarter that caters to non-dwarves. The city is also famous for its watch and clock making. Due to the coloring of the local rocks, some of the buildings in the city have a rainbow color pattern to them.
There is a local legend of Eotachs, a massive dracolich, who has claimed the city and rises from time to time to either remind its citizens to revere it, or to punish others who would attempt to control the city for themselves.