The Grassy Knoll Cemetary is the Town's graveyard. The square plot of land is mostly flat, except in the centre. Here there is a small hill, which the cemetary owes it's name too. The hill hides the entrance too the massive catacombs that exist under the graveyard.
The cemetary dates back to the founding of the town, though when the catacombs came to be is unknown. It is assumed it was most likely some short time afterwards. They are assumedly made by Pinwheel the Necromancer . Using the hidden entrance, he could quietly steal bodies from the graveyard and store them underground for later. About 5 years after the founding of the town, a large group of necromancers attacked. They left a large force of undead to wipe out the town while they entered the catacombs to kill Pinwheel and steal his research.
Fortunately, the theft of bodies had begun to be noticed and the town guards had expect it to be the result of necromancers. When the undead attacked they had already been prepared for a necromancer, though they were surprised at the army of undead. Once the dead had been done with, they entered the now uncovered entrance to the catacombs. There they found many of the necromancers dead, the few alive were broken men which no information could be retrieved from. They also discovers a room which once had clearly been used for necromantic experiments, however it was all destroyed. It is suspected Pinwheel did it so the other necromancers would gain nothing.
The guards searched as far as they dared and found nothing. As they left, one emerged with an odd sword made of bone. He said something was still in the catacombs and he'd been entrusted to guard the graveyard. He was fired from his position when he refused to the leave the graveyard, and become an unofficial Sexton of the cemetary. In a few years he was made the official Sexton, as he had captured many graverobbers and necromancers trying to rob the catacombs. After this the Graveyard's sextons have always been chosen by their predecesor, the bone sword being passed along.
The Asylum of course investigated the catacombs under the graveyard, for research and security reasons. As suspected, the catacombs are not normal.
Firstly, they seem to sprawl out endlessly without actually occuping any space. Readings taken have shown they tunnels of the catacomb not only should have passed right through the Asylum, but some run well above ground level.
Secondly, necromantic energy still flows through the catacombs. Stealing anything from the bodies in the catacombs brings the dead to life. These undead will hunt the thief till the stolen item is returned and the thief is either dead or driven from the catacombs. It is not known if the bone sword is subject to this, but all of the graveyard's sextons state it must never leave the graveyard.
Lastly, there are far too many dead in them. The Asylum has made sure to double the numbers, but there are more corpses in the catacombs then have died in the Town. Judging from from various funeral preperations of the bodies, it might well be they come from other graveyards. No other exits have been found and the Asylum suspects that the Catacombs are a pocket dimension made by Pinwheel. He could have been able to connect to other graveyards in order to steal bodies without being noticed.