From Final Fantasy - Wiki on Neoseeker

Wutai is a village from the Compilation of Final Fantasy VII located on the large island to the west of the western continent. It is the only town on the island, and has several shops and homes. There is a large mountain, called Da Chao, carved in the shape of five gods to the north of the town. This is Yuffie Kisaragi’s hometown, and her father, Godo, is the leader.

Prior to the events of FFVII, there was a war between Wutai and the Shinra Company, who desired control of the area for mako excavation. Wutai eventually succumbed to the might of the Shinra army and it was during this time that Sephiroth became a famous hero. The use of materia was banned in Wutai, and as a result Yuffie believes that materia will restore Wutai and thus becomes obsessed with collecting it.

Final Fantasy VII

When the party arrives on the island, Yuffie steals all the materia in the midst of battle against Shinra troops. A chase ensues throughout the town, and when the party finally catches up with her, she (and Elena) are kidnapped by Don Corneo’s men and taken to Da Chao. Cloud’s party and the Turks agree to put their differences aside to rescue their respective group members. When she is finally rescued, Yuffie returns the materia and continues to travel with the group. There is also a tall pagoda here featured in a side quest.

Shops

Final Fantasy VII: Crisis Core

Zack fights in the final battle of the war here at Fort Tamblin. During the struggle, he meets a young Yuffie who later coaxes him into all sorts of side missions.

See Also: Gaia (FFVII)

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Major portions of this page were written by: tifabelle