The Downtown District is the first level/area in Grand Theft Auto 2. In the Downtown District, the player can find casinos, hotels, a university and a large mental institution. The district consists of four sections; neutral territory, Yakuza territory, Zaibatsu territory and Loonie territory. Sedans and sports cars are very common around the district, as well as gang cars belonging to the members of the particular gangs controlling the parts of that district (Mostly the Loonies, they have the most spawning on the streets) and the Yakuza (they are the largest gang). A conglomeration of back alleys and narrow city streets in the Downtown district can mean a clean getaway by outmaneuvering the cops, or your worst nightmare when trying to evade the police.
There are 11 districts in total, making this the smallest district.
If the player happens to fall into water by being thrown by an explosion, instead of sinking in and drowning the player will instead fall flat onto it as if it were solid ground. This is probably due to the fact that there are no means to access water unlike the other two areas after Downtown that do allow water and have water deaths.