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The Cloud District is the main residential and business-oriented center of Kumogakure. Consider it the Times Square of Kumo... with some houses here or there. This is where most residential activity takes place. The buildings are all built into the walls of two mountains, bridges stretching across a center ravine to unite these two sections. Children are taught from a young age to be VERY careful around the gap - if you fall, you're gone. This is where most casual activity might take place - this is also the most concentrated area of citizenship, and would cause the most detriment if damaged. It's a good thing it's wedged between two mountains.