Otoh is one of the two lesser cities connected to the Kingdom of Faq. Like Kibo it is described by Vinny as a glorified farm.
Real World Reference
Otoh means, "On The Other Hand." This could relate to the philosophical history of the kingdom. In philosophical discussion, many different points of view are taken into consideration. Taken further, we may assume there are different options available to the people in Erfworld, such as the one taken by King Banhammer.