Little Tokyo is a gloomy city to the west of Daten City. This city is inspired in much more realistic cities than Daten City, Tokyo in particular.
It seems quite contaminated and populated, for it has much more buildings and shops than Daten City. Little Tokyo's stores and billboards are all in Japanese, implying that it must be the primary language spoken in the city. There is a newspaper from Daten City published there called Daten City Variety.
Little Tokyo was the main setting during "Vomiting Point", and is where all the characters introduced in this episode reside.