Board Thread:Speculation House/@comment-6797139-20131024035706/@comment-14909251-20131025061100

I suspect it is like a reservation. Faunus still live in Menagerie as they had been living there for some time, but they are now free to live outside of it. As I have said elsewhere, I do not believe Menagerie is where they all came from, but that they were the original inhabitants of lands occupied by humans and were expelled in the face of mankind's expansion. This is suggested in From Shadows, implied by the name Menagerie, and the location of Menagerie just makes it seem more like a place of exile to me.