Demon Palace.
The wolf king is one of the seven demon kings of the Southern Land, and he ruled the area north of the Southern Land. Within a mere 800 years, he had cultivated to turn from a little demon to the twelfth-level demon king he was now. His talents were rather extraordinary. So he took the area north of the Southern Land, closest to humans. Because of the spirit river, cultivators of the world was never able to cross into Southern Land. Besides, demon beasts had their own demonic aura, which could expel the Five Elements spirit qi of the spirit river, so the spirit river posed no threat to demon beasts, allowing them to come and go freely. Therefore, this became a natural safe shelter for them.
The closer an area was to the spirit river, the more the demon beasts liked to live there, as it allowed them to go out and hunt cultivators and mortals freely, and hide back behind the spirit river if higher-level cultivators pursued them.