The Tooniverse, a pun of "Toon" and "Universe", is a fictional world that Toons call home. This includes Duckburg, Loontown, and most importantly, Toontown. Toontown is the main setting of Toontown Rewritten. This world is colorful, silly, and cartoon-like.

In Toontown, the Toons fight off the robotic invaders known as the Cogs, lead by the mysterious Chairman who wishes to take over Toontown and turn it into a grey business metropolis. As a Toon progresses through the game, he/she receives ToonTasks from NPCs for rewards such as being able to access any playground in Toontown via the Portable Hole Network. However, the Cog headquarters are areas that you cannot teleport to, unless you have maxed your Cog Disguise for each headquarters.

These are the neighborhoods and other zones of Toontown: