The Truce is an agreement between the Girls of Old Town and the Basin City Police.
Settled on after the Girls of Old Town freed themselves from under the control of the mob, The Truce allowed the Girls the right to enforce their own laws without interference from the Police. This also allowed Old Town a certain level of protection from outside interference from the mob making The Truce vital to the survival of Old Town. The cops benefit by getting free entertainment from Old Town girls when they have parties and the promise that any cop that accidentally comes into Old Town as anything but paying customers would be allowed to leave alive. This agreement factored heavily into the story for The Big Fat Kill in which the Girls of Old Town accidentally broke the Truce and have to cover up the mistake.