User blog comment:Stormwell/Dunwall Locations/@comment-24477775-20140131172012/@comment-16533050-20140131210821

Honestly, its reported that the Hatters held territory all over Dunwall... they just kept losing it due to the rise of the Bottle Street Gang and Slackjaw's influence, Rothwild's Butchers having ties to legitimacy with the Watch, and others such as the Dead Eels. They were spread far and wide.

The Dead Eels hadn't consolidated their hold on Drapers Ward yet, and this is what led to the fighting that Daud was privy to. Before the plague, the Hatters were THE gang of influence throughout the city.