Location
This area is located at 1452W 1303S. It is marked on the player's map after talking to the spirit of Charles Brehgo who is found in the Crash Site Cave at the Crash Site, regardless of whether you accept his quest to kill Arbalah or not. This is part of the broader The Priest and the Bandits quest.
Area
Points 1 and 2 are gravestones dedicated to Arbalah's recently deceased family.
Point 3 is Arbalah's House. The door is locked at night. Once morning arrives you can go inside and meet Arbalah. If you talk with him, then he will tell you his side of the story, and ask you to perform a quest of his own. This involves retrieving his Sacred Artifact.