Loompaland is the country where the Oompa-Loompas came from, which is made up of three major regions. Chocoloth to the south, Gue Sar in the middle, and Jelaethon to the north, these last two separated by a channel and connected by the snozzen bridge of the Berri Span. The Oompa-Loompa capital city Crystalforge is located within Kuak Gus, a subregion of the larger Gue Sar sector.
According to Willy Wonka himself, the whole place is a " dangerous, beautiful, magical, and inspiring world. A world filled with discovery, innovation, and wonder. A world worth fighting for! A world worth protecting from the enemies from the wastes and the most horrid beasts in the world; Hornsnozzlers, Snozzwangers, Vermicious Knids and Whangdoodles."
Most people outside of Wonka's circles dismiss it as nonsense at first, but when they travel there they are turned into believers.
The Oompa-Loompas used to live in deep caves hollowed out by eons of generations of Oompa-Loompas mining for rock candy in the depths of Crystalforge to escape the monsters. Here all they could eat were green caterpillars, which, also according to Wonka, tasted revolting. He also learned that the Oompa-Loompas craved cocoa beans, so Wonka offered them to work and live in his chocolate factory, and they could have all the cocoa beans they wanted.