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Bugtown, formerly known as the Farnel Research Facility or Lab 352, was a genetic research facility located in the Broken Valley on the planet Balmorra, next to Lake Farnell. Prior to the Great Galactic War, the facility focused on experimenting with Colicoid DNA donated by the Colicoid Creation Nest, and they created mutated Colicoids that were to be weaponized. However, the Sith Empire bombarded much of Balmorra during the war, and the Colicoids were freed in the chaos.

The insectoid aliens quickly overran the facility, killing all of the staff and transforming most of the buildings into nests. The area became known as "Bugtown" due to the Colicoid infestation, which gradually spread to other areas of Balmorra. During the Galactic War, the Galactic Republic established a beachhead at Bugtown in the form of Farnel Outpost.

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