The northern half of the city contains a Pokemart and the Pokemon Center. The Pokemart has had trouble resupplying – its wares were lost first to nukes, then to looters, and it currently sits in the fiefdom of a landlocked warlord. Prices are high and selection resembles the version in RBY, not GSC. The construction site where Machoke had long pounded has become the site of a tower modeled after the towers of Ecruteak. It serves as a temple of Kanto's gods: the legendary birds and Mew, and also as the capitol of the local warlord, a flying specialist by the name of Earnweald who has waged a long war against Surge, which a few months ago settled into a stalemate and then a truce. Maybe he didn't realize that flying-types are weak to electricity and that he picked the wrong fight, or maybe he had concluded that with proper strategy, a Gliscor, and a diverse army it doesn't matter. He held his own, but perhaps would have done better against a different foe.
The Pokemon Fan Club, although north of the main road, is an armed compound with practical independence. It is defended by guns, not pokemon, and pokemon contests are still held there, but only ones of the "Cute" category.
The southern half is the richer part of the city. It is effectively controlled by Lt. Surge, who despite his origins in a dependency of Isshu on the North American continent has established himself as the best claimant to the heirdom of the ruined Pokemon League. (He's been in Kanto for decades, but no one wants to be the Lightning American in a time like this.) Erika does not agree, but is in no position to oppose him, and most of the gym leaders walled up in gyms converted into besieged compounds have given tentative support. It contains the gym – largely a military base now, still filled with specialists in electric-type pokemon, because that's what Surge knows – along with an enormous port. With the pokemart elsewhere, exotic goods can be found at the harbor, but the merchants demand high prices for braving pirate-infested waters: Surge's Lanturn navy defends the port and little else.
Speaking of Mew, that truck is still parked in the harbor. None thus far have found a way to move it, it survived a nuclear explosion intact and judging by Mewtwo's recent rampages Mew isn't under it. But what is?
Rumors abound of a pokemon grove to the north, rich in rare pokemon and gold, protected by a lone breeder in his late teens. Most bandits don't believe it – the gold is completely unsubstantiated, there's a bit more evidence of rare pokemon, but there's also the issue that most of them appear to be sick – why else would the protector be a breeder? And then there's the fact that most don't want to pay the high “tolls” demanded by the various road barons, which of course are used more often to enrich the locals and the barons than to actually maintain the roads. Still, a small group has struck out to the north in search of it, though only time will tell what if anything they will find.
Oh, and for the past three days there's been a thunderstorm with clouds so thick it blots out the atmospheric dust which usually covers the sky. Earnweald is standing atop his tower, confident Zapdos will spare him. Surge is atop his gym and says the electric storm is a sign of his own power, but he's wearing a cloak and gloves made of Jolteon hide, complete with Volt Absorb. Each of them has a grand speech to give, and crowds are gathered on both sides of the city.
EDIT: As an aside, because this is a play-by-post game with a lot of people, time is not strictly linear. Just because one person's character has experienced major event X doesn't mean it's happened to the rest of you. It doesn't mean it *hasn't*, though, so feel free to jump into conversations and interact with people even if you haven't played through everything before it.
If it's in the main post it's happened to everyone, but for stuff I say in replies (like the big speeches) the rest of you can still react even if one person's already heard it and played out a little after it happened. You just can't interact with a player character in a way which would change their already described actions.
Second edit: As a general note, if you start up conversations with an NPC or go into battle or whatnot I'll post, while if you don't I'll wait a while to see if any PCs jump in before doing a "what happens" type thing. Or at least that's what I'm going for, though I think I've jumped the gun at least once.