The Ghetto is a district area of Paradise. The external area of the ghetto contains the Police Station, the Bates Hotel, the 7th Heaven Food Stores, and the entrance to Earl's Elephant Ranch and Grill. However, the inner area is in a really precarious position, with a massive derailment as a result of the destruction of the railroad.
The houses in the ghetto are in poor conditions, with graffiti all over the walls, and most notably with armed individuals. As the week progresses, the individuals in the ghetto will become more aggressive, attacking the Postal Dude for no reason, and on Friday the place is invaded by Terrorists, who are spotted atop various buildings, shooting and throwing Molotov Cocktails.
The Police appears to be unaware or careless about the situation in the ghetto, even when the Police Station is just across a tunnel. This has created a strong hostility with the residents who attack Police (or the Postal Dude in the Police Uniform) on sight.