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Lahan Village was a small hamlet located several kilometers in the eastern part of Aveh, beyond the Blackmoon Forest. Citan Uzuki lived on a hill to the north. It was home to Fei Fong Wong for three years since he was dropped off by a Masked Man and left under the care of Chief Lee. It has a small population of probably less than 100 or 200.
Lahan is, symbolically, Fei's vision of paradise and home - a happy and relaxed village where everyone knows each other's name and face, humanity lives in peace with nature instead of against it, and it's peaceful, laid back and relaxed. The music complements this ideal.
It is literally his entire world, so it's not surprising he considers suicide after it is obliterated and he is exiled. Lahan's destruction serves as a wake-up call for Fei as to what the "true nature" of the world outside his small little town is.
After Fei came to, Alice's younger brother Dan blamed him for the destruction of the village and swore revenge for taking his sister away. On the advice of Doctor Uzuki, Fei fled into the Blackmoon Forest to distance himself from the angry villagers.