Setting Questions

I have a quick question about the setting of AC. No, not the timeframe or anything, but exactly where does it take place? Like, the city bits (the Bahamut SIN fight, for example). It looks like it could be the upper plate of Midgar or something, but after reading part of the On the Way to a Smile: Case of Tifa, I realize that it might be a new city called Edge. And since the movie only makes actual mention of where characters are a grand total of twice (Forgotten City and Healin Lodge), I honestly don't know. So, where is it? Edge?

Oh, and, if someone could point out to me where on FFVII's world map Healin Lodge is supposed to be, that'd be great too. I've been trying to figure it out ever since I took notice of the sign at the entrance (the one that has Kalm, Midgar, and the Chocobo Farm region listed with arrows pointing which directions they're in).

Thanks in advance!

It's set in 'Edge', a new town build near Midgar, from my understanding. (Or was it called 'Neo Midgar'? Either way.)

Yes, it is indeed set in the town of Edge. It was built from scraps from the ruins of Midgar.

Healin Lodge isn't on FF7's world map. It was built after the events in FF7, just like Edge was. Healin Lodge is probably somewhere between Kalm and the Chocobo Farm.