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The Royal Compound was embasy for the Kingdom of Acorn located on Angel Island. It served as a home for Colonel Sommersby and his wife as well as for Elias Acorn during the years of Dr. Ivo Robotnik's rule over Mobius. (KtE: #20, #21)
It is unknown what became of the Royal Compound after the Eggman Empire-backed Dingo Regime took over the island, though presumably it was destroyed during their occupation, considering that the Sommersby family was seen in the Feral Forest. (StH: #239)