Chinatown was simply a horrible place. Home to the homeless, it was secretly annexed and destroyed by a female 8km Super Star Destroyer.
Many people thought it to originally be the underlevels of Croissant, but they were wrong. It was actually in the underlevels of Tatooine, which tended to make it a very sandy place. It was famously known as the place where Noah (as in the Ark, not Noah Cross. Both John Huston, though.) shot Darth Frank in the groin with a fist. Curiously, this fist belonged to Kyle Katarn.
J.J. Gittes once stumbled across Chinatown and got his nose sliced by some crazy scientist.