When Paragon City began to grow from a small group of colonial townships, the heart of the coalition was Smithtown. Founders' Falls encompasses the area from which that seed began to grow, eventually developing into the sprawling metropolis that is Paragon City.

The most opulent place to live, Founders' Falls is where you are most likely to meet members of the Paragon Yacht Club. Then again, with water instead of major roadways, yacht might be the only way to travel. When the Red River rose, much of the area was left underwater, but the buildings that jut out provide a Venice-like feel to the region. The more modern structures of this zone were built out onto the water to avoid harming many of the historic sites that lie in the area.