The Laughing Valley of Hohaho (also called the Laughing Valley of Santa Claus) is a beautiful vale east of the Forest of Burzee. It was empty for many years, until Santa Claus settled in the Laughing Valley after leaving the protection of Burzee. It is his home still.
To the north and south of the valley are rolling green hills, and a brook wanders down the middle. The forest is to the west, and to the east is a broad plain. Nearby stands a huge mountain that contains the Caves of the Daemons. Those who spend any time in the Valley breathe in its Spirit of Happiness, which drives out terror, care, and concern.
During his first night in the Laughing Valley, the Knooks built a house for Claus from logs he had cut from dead trees. It had two rooms and a fireplace, along with needed furniture. The second night, Fairies brought dishes, utensils, tools, and clothing. The Ryls keep his cupboard filled with food so that he does not have to plow up the wildflowers. (The Life and Adventures of Santa Claus)