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These fellas had no residence and existed outside every home city. They usually lived together in a group with one leader among them. Occasionally, they would form smaller squads to loot items from villages outside the city. The cities that they would usually loot were those without NPC watching over. Even though these refugees were not like bandits, they were comparatively hard to deal with because of their large number.
The refugees of Twilight City stayed on a hill which was located at the common boundary of Dusk Plains and Dusk Mountain Range.
When Wang Yu and co. arrived, they finally understood why this quest was deemed to be extremely dangerous.