That area was made just to make people wonder what it would be lol
it is in fact nothing
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The intention with the chest west of MoD Town by the Zorbi place is more explicitly that. When I added that, it certainly wasn't my intention that ratform would be able to take you to it. This level, however, I readded it to the map back in the day because it had been my favorite overworld level. The location was mostly dictated by my not wanting it at the same low elevation because then snow wouldn't make sense. Making people wonder about its purpose is a nice side effect, although I'd rather it took less than ten years for it to be reintegrated with a quest.
Old map
Early iterations of the present map