Xenotime

Xenotime is a town in the desert that is famous for its goldsmiths. It used to be that Xenotime was a lush, green, town. Now, since the townspeople discovered a gold vein, they started digging which reduced the topsoil and since then, it's been a town in the desert.

The Light Novel
Edward and Al visit the town to get some leads on the Philosopher's Stone. While in town, they discover that someone has been using their names. They also discover that the imposters were trying to create a Philiosopher's Stone. So in the night, Ed and Al sneak into the lab to read the notes. They get caught be the imposters however, who reveal themselves to be called Russell and Fletcher. Ed and Russel get in a big fight while Fletcher and Al try to pull them off. Ed and Al leave before they get caught and decide to come again tommorrow.

They come again for a few more nights and eventually, Ed and Al finds the notes and how Russel has been trying to make the stone.&#160; Russell has been using the Crimson Water that his father made and trying to reverse engineer a Philosopher's Stone. Ed concludes that it's impossible to make the Stone using reverse engineering. At this point, Russell steps out of a curtain and they start to fight again. This time, no one is there to stop them and eventually, Ed and Al escape through a tunnel that Fletcher transmuted.