The area known as Faultline was once a section of Paragon City known as "Overbrook".
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Overbrook was once a nice and quiet area just south of Skyway City. Its signature feature was the Overbrook Dam, which provided not only hydroelectric power for the city, but also kept the river from overflowing.
In the late 1990's Overbrook became the temporary headquarters of the Paragon City branch of Hero Corps. With retired Freedom Phalanx founder Kit Rafter (aka Luminary) serving as the spokesman for the private group, it was believed that Hero Corps could rival that of the local Freedom Corps.
Unfortunately those dreams were dashed in 1999 when a raid by perceived super-villains destroyed the facility. Attempts to rebuild the facility failed, and in October of that year Hero Corps abandoned all plans to set up an office there.
During the First Rikti Invasion of 2002, the city was divided into zones by series of monstrous war walls. Overbrook was physically separated from neighboring Skyway City, and it also cut off all access to the land on the other side of the dam.
Then, while the city was still recovering, Overbrook was held hostage by a supervillain calling himself "Faultline". A group of heroes tried to stop him, but it was too late. Faultline's power destroyed Overbrook with a seismic shock that leveled every building in the area. The shockwaves could be felt through the southern parts of Skyway City, but the effects were limited to within the war walls due to its alien combination of technology and material.
The area was quickly closed off and declared a Hazard Zone. The biggest fear was the Overbrook Dam, with strange seismic quakes in the area causing damage to the structure. Should the dam rupture, the rushing water could easily flood the southern part of the city through the war walls.
In 2006, the area was opened again under limited capacity with the first neighborhood, New Overbrook, accessible for stores and restaurants. Although it is still officially called "Overbrook", most people now refer to the area by the villain that originally destroyed it: Faultline.
(Please see the Paragon Wiki entry for more information about the area.)