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Cloud City is a port city and tibanna gas mining complex floating in the atmosphere of the gas giant Bespin on large-scale repulsorlift equipment. Lando Calrissian was a notable administrator of the City. Lando took charge of the city after winning it from the previous owner in a game of Sabbacc. He was leader of the city until the arrival of Darth Vader and the rebels Han Solo, Leia Organa, and Chewbacca.
Led there by the bounty hunter Boba Fett, Vader was hoping to use the rebels to lure Luke Skywalker into a trap. Vader planned to inflict pain on the rebels, which Luke would feel through his connection to the Force. When he came to rescue his friends, Vader intended to use one of the city's carbon freezing chambers to freeze Luke for transport to the Emperor. To ensure that it wouldn't kill his quarry, he tested it on Han Solo, encasing him in a block of carbonite. Luke was able to escape the trap, but he lost his hand and lightsaber in a duel with Vader.
During the course of events leading up to the escape of Skywalker Lando came to the conclusion that Vader was not going to allow the continued freedom of the city as the posting of a full Imperial garrison was becoming more and more obvious. In a swift action using his personal guard, Lando arranged the escape of Leia and Chewbacca and rushed to try and recover the carbonate block of Solo. Arriving too late to prevent the departure of Boba Fett, the group was found by R2-D2 and the droid assisted them in escaping the city and reaching the now repaired Millennium Falcon. During the attempts by R2 to bypass the security measures put in place by the Imperials to prevent the rebel's escape, R2 learned from the city's central computer that the hyperdrive on the Falcon has been deactivated by Imperial agents. After escaping the city and recovering Luke from the base of the city, the rebels used the ship to escape after R2 used his info to reactivate the disabled hyperdrive.
The upper levels of the city contain the residences of the citizens of the city as well as its administrative offices. The lower levels of the city are dedicated to the tibanna gas mining, processing, and refining systems that prepare the product for shipment. Below the city are some weather vanes and sensor equipment that maintains the city's altitude as well as an array of tractor beams that are used in the harvesting of the tibanna gas. As tibanna gas is used in the manufacture of blasters, and Lando was selling to less then savory customers, Vader was able to use that to help convince him to turn in his old friend Han Solo.