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The Embassy District is a neighbourhood of the Old District of Arc City. The neighbourhood is so named because it was specifically constructed to hold the embassies of all nations that did not already have embassies elsewhere in the Southern Arc Islands. The Embassy District is a large neighbourhood, and the southern half of it lies on the Arc Peninsula.

Prior to the late 1990's, when the neighbourhood gained its current use, the area consisted mainly of low-density industrial areas (numerous of which were abandoned at the time the neighbourhood was reorganized), small farms and low-quality housing, most of which was demolished to make way for the office buildings of the present-day Embassy District.

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