According to Ren Jingbo, the Sect Gathering of Thousand Lakes Country, held once every five years, was hosted by the Purple Flame Sect, a third-tier sect located in Purple Flame City.
The purpose of hosting the Sect Gathering was twofold: first, the major sects would redistribute interests through Martial Dao contests; second, it provided a platform for the disciples of the various sects to exchange views with each other.
There were a multitude of sects and martial artists in Thousand Lakes Country, yet cultivation resources were extremely scarce, leading to a situation where temples outnumbered monks, and so the major sects competed for their own interests—openly and covertly—their disciples often suffering casualties in the process.