Arco della Faenza marks the beginning of the Valle dei Mulini, the area of the medieval city’s production activities. The area was divided into two districts, whose names were taken from the ancient river name: Chiarito di Basso and Chiarito di Sopra. The first district started from the present-day Piazza dello Spirito Santo and ended at another city gate, which was built after a subsequent urbanization period, towards the end of the 11th century, while the second district corresponded to the innermost part of the valley.
To the left of the Arco di Faenza, we can admire a typical handcrafted nativity scene made up of small houses and stone figurines depicting scenes of daily life in the village. The cave of the Nativity is quite large and is easily recognisable, due to the presence of angels marking the exact spot where the unborn child will be placed.