Lut Gholein is the town area of Act II in Diablo II. It's not know if it will appear in Diablo 3, but it is an important part of the lore of Sanctuary.
Set on the western edge of the Twin Seas, the jewel city of Lut Gholein has actually prospered in the merciless environment of Aranoch. Most credit this to the city’s coastal location and strong sea trading ties with the kingdoms to the east and west. Although a few bands of nomadic people have found ways to survive in this hostile desert, most steer clear of these sandy wastelands.
