Dali is a small village in the kingdom of Alexandria. When the party first arrives, it is suggested that the settlement is a farming village, or at least, was a farming village. Upon arrival, the villagers seem to act strange, but the party takes no notice. That is, until Vivi disappears, and the farm that the village was once known for has become a small little vegetable patch, instead of a full-fledged commercial farm. The team discovers that Vivi is kidnapped and held underground, where the real Dali emerges.
Dali, from the outside, is just a small Alexandrian farming village. However, when the party digs deeper (literally and figuratively) the discover a manufacturing community in which golem-like Black Mages are built. It is kept a secret, but helps to explain the mysterious events and actions that occurred in the village. Vivi is kidnapped, a mistake for thinking that he is one of the manufactured Black Mages. When the party finds him, they discover that Alexandria (Queen Brahne in particular) is ordering the mass production of numerous Black Mage drones, which Dali is the main source of. It is slowly revealed that Dali is something of a cover for the underground manufacturing plant, where most of the villagers have abandoned the farming in favor of a more lucrative deal. Only one woman and the Innkeeper refused to take part in the manufacturing. When the party realizes the farm is extremely small, things begin to not add up. They learn the horrible truth of the village, and thus begins the story of Vivi: one of beginnings, history, and fate. After seeing Black Mages (much like himself) being built, Vivi begins to contemplate his origins, life, and eventually, death.
Eventually, it is learned that these Black Mages are not only used by Alexandria to conquer other kingdoms, but as the main expendable force for the Alexandrians. Later on, some of the Black Mages are discovered to be conscious, living beings, capable of individual thoughts and feelings (though unexplainable to them without actual parents to explain it all).
When the party frees Vivi from the workers, they are captured in one of the mysteriously marked barrels. They eventually free themselves, and reunite with Steiner. After the reuniting, they encounter and do battle to the second Black Waltz, Black Waltz No. 2.
Black Waltz No. 2
Steal: Steepled Hat, Leather Plate
In this fight, the Black Waltz will often counter any magic spell with a stronger version of it (eg. Fire will result in a Fira on the party). Other than that, he isn't much of a worry. Just be sure to steal, and do several physical attacks. After a short time, the boss will fall.