Scrap Valley is a location in the Adventures of Sonic the Hedgehog television series. It functions as a junkyard and is the home for all of Robotnik's misfit or dysfunctional robots. It houses a small town for them where they can conduct their own lives without any problems.
When Robotnik built his luxury resort Club Robotnik, he planned to flood Scrap Valley to make it into Robotnik Lagoon. He sent a giant crab compactor which devoured all of the dumped robots' village.
After sabotaging Club Robotnik, Sonic and the rejected robots destroyed the entire resort. The robots then used the scrap metal from the destroyed resort to rebuild their home.