The city in which GTA2 is set is only referred to as "Anywhere, USA". As a result of this, it is sometimes called Anywhere City by fans. Although the exact whereabouts of the city are unclear, the term makes it clear the city is located in the United States of America. GTA2: The Movie was recorded in New York City, but whether this should be considered canon can be debated.
Anywhere, USA has an extremely dark atmosphere. Many streets are dirty and run down, while the city succumbs to crime, particularly the seven gangs. Many of the pessimistic views of the future are represented. Streetrobbers, joyriders, aggressive drivers and gang members dominate everyday life. The police barely manages to fight back crime and has to resort to brute force. Huge organisations gain and abuse power by semi-legal ways to distribute drugs, while religious extremists, onethical scientists and fanatic rednecks protect their own turfs.
The city is devided in three main districts: the Downtown District, the Residential District and the Industrial District.
The Downtown District is the business district of Anywhere, USA and is reasonably clean compared to the rest of the city. In this district you'll find many office buildings, high-rise appartment flats and the university, but also some older docks, the main church and a small industrial area. The Loonies have taken over the Sunnyside Asylum, the Yakuza dominate the areas Funabashi and Ukita and the Zaibatsu Corporation operates from it's own Zaibatsu headquarters. The SWAT is the highest police force you will encounter here.
The Residential Districts is the suburban area of the city. Among lots of appartment buildings, you'll also find a large police station, the Alma Mater State Prison, Camp Banks army base, a hydro electric dam and the shopping mall (simply called "The Mall"). The SRS Scientists have build a giant research center in the south-east, the Rednecks live in a trailer park at the edge of the city in the north-west and the Zaibatsu Corporation can be found in The Village in the north-east. The FBI is the highest police force here.
The Industrial District is filled with all sorts of industrial buildings, ranging from factories to warehouses and from power plants to sewage plants. The Zaibatsu Corporation has a large industrial area called Escobar which they are ever expanding, The Hare Krishna resides in their Vedic Temple complex and the Russian Mafia operates near the docks. Also, a small area called Mad Island is confiscated by a small gang of thugs. In the Industrial District, you will eventually get in trouble with the army if the FBI failes to stop you.
Some additional areas are used as the bonus levels and multiplayer levels. Many of these levels are based on parts of the districts, so they aren't really part of the city.