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Ovejas is a very isolated settlement on Pandora located somewhere outside of where the game takes place, far enough that the residents had never heard of Vaults or Hyperion. It is not, however, isolated from bandits. It is the home town of Salvador. Handsome Jack sent a Hyperion team to claim the village in the name of Hyperion. However, this was stopped by Salvador.
"Ovejas" is Spanish for rams or sheep.