Jerez floats about in the western shore of Lake Limnia, at the northwest corner of the Wasp Empire. Float is an approriate word in a number of ways. With the constant rain, it seems like the streets of the 'city' are actually streams sometimes. There are certain parts of the city which are actually within the borders of the lake, either on stilts or quite literally floating. The ramshackle and temporary nature of the buildings is such that it is not unusual for old ones to fall into disrepair or just plain collapse, leading to a new one being built on a different outskirt, the location of the city itself thus gradually moves.
It is sometimes held that the city only exists because without out no-one would know where to contact the skater smugglers who make their base out of it. These smugglers continue to ply their trade despite the best efforts of the wasp garrison, but even they give up trying eventually and either join in, or just sit in their barracks, trying to keep out of the rain.