Donglin Valley, the largest gathering place for demons and ghosts in the Northern Territories, is said to have the existence of the Heavenly Immortal Realm deep within the valley. Despite the Imperial Court's yearly campaigns, Donglin Valley has never been completely eradicated.
It seems as though some sort of agreement had been reached between the two parties.
Humans were not to enter the deep parts of the valley, and the Heavenly Immortals of the Demon Race were not to emerge from seclusion. Both sides were free to slaughter each other on the outskirts of Donglin Valley to their heart's content, with each being responsible for their own life and death!
The formation of Donglin Valley is said to have been caused by the Royal Family's hunt of a Heavenly Immortal Demon long ago, whose bones turned into mountains and whose blood congealed into ice and snow, resulting in the valley's perpetual ice-cold state.