Kalm Kalm is a village in " Final Fantasy VII " located outside of Midgar . Unlike the bustling metropolis nearby , Kalm is a quiet town with only a few shop s , a bar , and an inn . The economy is based upon mining in the Mythril Mine , but during the time of " Final Fantasy VII " due to recent activities of Midgar Zolom outside the mines , work has stopped . Story . " Before Crisis - Final Fantasy VII - " . During Shinra Electric Power Company ' s military bombing operation , the target of which was supposed to be 50 kilometers north of Kalm , due to equipment malfunction , the target is thought to be Kalm itself . The resulting destruction leads to an incident similar to Nibelheim Incident where the entire township is destroyed . Survivors are shipped to the Shinra Mansion in the town of Nibelheim , where they are thought to have died . The town is rebuilt , and the incident covered up . It is thought the survivors were executed to support the cover - up , but as many of them are test subjects to Professor Hojo ' s experiments in fusing Materia into human beings , it is more likely they were either mutated or killed due to the experimentation . Veld , the leader of the Turks , Shinra ' s intelligence agency . is within the township during the attack . He loses his arm , receiving a Materia - augmented prosthetic so he can continue working for the Turks . " Final Fantasy VII " . The sleepy village is the first town Cloud , Barret , Tifa , Aeris , and Red XIII come across after leaving Midgar . When the party stays at the inn , Cloud tells the tale of the incident with Sephiroth destroying Cloud and Tifa ' s home town of Nibelheim several years ago . Once the story ends , the party leaves . Later on Barret ' s daughter Marlene is sent to Kalm to escape the Shinra Electric Power Company . Despite the town ' s proximity to Midgar , it is not destroyed when Meteor falls . Marlene views the destruction and saving of the Planet by the Lifestream and Holy from Kalm . " On the Way to a Smile " . Following Meteorfall and the destruction of Midgar , there were many people who traveled to the town to take refuge . Residential houses became emergency shelters and the inn offered free rooms to refugees but the sheer volume of them forced some people to live on the streets . The near - immediate introduction of a new disease that began to plague the populace did not help matters . Under the threat of death from an unhappy public blaming the Shinra Electric Power Company for Meteorfall , Rufus Shinra , now residing in Kalm , concocted a plan to redirect the populace ' s energies toward rebuilding their homes , using the wreckage from Midgar and build a new town on the eastern - side of Midgar . " Dirge of Cerberus - Final Fantasy VII - " . One year after the events surrounding Kadaj and Sephiroth ' s return , and three weeks after the disappearance of an investigative team of more than 38 people into a previously sealed section of the Midgar ruins , Kalm comes under attack by an unknown military force during a night - time festival celebrating the recovery from Meteorfall . Targeting individuals who had not been infected by Geostigma for capture , Vincent Valentine , who was residing in the town at the time of the festival to meet with Reeve Tuesti , disrupts the raid and supports the World Regenesis Organization in pushing the mysterious army out of Kalm , but not before he encounters the Tsviets Azul the Cerulean and Shelke the Transparent . Cait Sith later comes upon some citizens from Kalm within Sector 0 underneath Midgar , captured during Deepground ' s raid and still contained within the Dragonfly equipment containers , and watches helplessly as they are sacrificed en mass to awaken Omega . Locations . Kalm is located to the North on Gaia ' s Eastern continent to the East of the Midgar Wasteland . Town . The party enter the village square from the south - west corner . The inn , shops , and various residences can be accessed from here . There are three shops located on the upper level of the town , where the player can purchase Materia and mythril - based weapons and armor . Inn . The inn is located to the left of the village entrance , and visiting it is essential to move the story forward . It is here that Cloud recounts his experiences as a member of SOLDIER to the party . Mother ' s House . A mother and daughter live at this house . Old Man ' s House . And old man and his dog live at this house . There is a locked chest that has no means of opening . This chest had originally contained the Titan Materia , but the idea was scrapped and it was moved to Gongaga instead . Tower House . A man and two siblings live at this house . Traveler ' s House . The Kalm traveler and another woman live here . Bar . Located through a tunnel beneath the upper level of the village , the bar is frequented by miners who are out of work due to the Midgar Zolom . Item Store . The shopkeeper at the Item Store manages the Item Shop . Weapon Store . The Weapon Store is a shared store that sells battle equipment and Materia . Though there are two doors to the establishment and appears as a semi - detached building , there is no wall between the store . The shopkeeper on the left manages the Materia Shop , and the shopkeeper on the right manages the Weapon Shop . Quests . Date mechanics . The game has a hidden affection value that determines whom Cloud will go on a date with in Gold Saucer later . The value is determined by the dialogue and party member choices made prior to the date . When Barret leaves the inn after Cloud ' s story and asks for Cloud to get a move on : When talking to the woman who mentions that Mako is convenient ( values only change if the characters are in the present party ) : When talking to the woman who mentions that the old ways were better ( values only change if the characters are in the present party ) : Kalm traveler . Kalm is the home of the Kalm traveler who desires various items from around the world . He is found at Traveler ' s House 2f . . If the player brings him the items he desires , they are plentifully rewarded . Musical themes . Like in many towns , " Ahead On Our Way " plays in Kalm in " Final Fantasy VII " . When visited on disc two after Meteor is summoned , the music changes to " Anxious Heart " .