Cappy Town is located to the west side of the Island of Dreamland, near Mt. Dedede.
The Town is a small settlement of mushroom-like creatures called, Cappy.
The Town suffered major damage during the war against the diabolical being, Nightmare when he sent a fleet of Destroya U.F.Os to eliminate Kirby!
Meta Knight, Kirby, and others retaliated with the Battleship Halberd!
The Town was rebuilt not long after Nightmares defeat.