This area is a made-up country that Skipper used to distract Rockgut. According to that squirrel-crazy older agent, it is "no place for amateurs"! Although Rockgut finds out how fake Grr-fur-jiggle-stan is, Duchess Lucinda accidentally made the place real when she opened a portal to a young-but-parallel dimension in which humans have the animal role and visa-versa, and though she thought at first it was a dream come true, she finds out how right that penguin's worser-crazies was about it... the place was actually worse by far then even the Hoboken Zoo! In Grr-fur-jiggle-stan, the local animals abuse their dictation, and intend to expand it by conquering the real world, which they couldn't do after Duchess Lucinda closed the portal from her side, but she couldn't be rid of the door completely, so she kept it in a vault for all times (or until her crazy side insists she visits again, whatever comes first). The portal and vault only leaked once on Halloween night, when appropriately named assassin rabbits named Trick and Treat (which turn out to be the envy-crazed, attention-craving inner demons of Alice's similarly named deceased pet bunnies, Tarik and Treasa) who used fake hospitality to trap and torture the zoo animals until they were sent back and the portal resealed.
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