This is an optional area where you can find a lot of useful loot, including the Loaded Axe and Flame Vent shinobi tools, a mini-boss that provides a Prayer Bead, Treasure Carp Scales (to be traded to a pot merchant in the river area), and more. The enemies here provide considerable EXP as well, making it a good farming point early on. There are two mid-bosses here that drop prayer beads, while the main boss will drop a Battle Memory that can permanently increase your attack power.
From the Outskirts Wall - Gate Path idol, continue past the gate where you can find General Naomori Kawarada. Continue downhill to find a ruined house with an old lady on the second floor. Talk to her to receive the Young Lord’s Bell Charm.
Return that bell to the Dilapidated Temple and offer it to the buddha inside the temple (to the left of the Sculptor). This will transport you to the Hirata Estate, three years in the past. Even if if this map takes place in the past, you still get to carry your possessions and keep the items you find here. You can even freely travel to and from using the Sculptor’s Idols found here.