Small village south of Baghdad, whose most notable feature is the nuclear plant.

After years of unchecked pollution by the nuclear plant, the area is contaminated beyond belief-according to Greenpeace, local people are storing barrels of "Yellow cake" uranium (a highly concentrated form of uranium fuel) in their houses, there are random radioactive sources scattered about the village, and much of this radioactive material was looted (yes, looted-can you say "poor security"?) and used to build houses, which is obviously a Bad Thing.

This had been exacerbated by the US army, who refused the IAEA permission to decontaminate the site, then stuck their heads in the uranium contaminated sand and said that Al-Tuwaitha needs no cleaning. They have since relented.

Greenpeace, and the army, have begun the process of putting the barrels of uranium yellowcake back in the plant. And a good thing too...the village already has 10,000 times the normal (read: safe) level of radiation.
See also Chernobyl, Mayak, BNFL and Windscale/Sellafield.

Sources: http://www.greenpeace.org/international_en/news/details?item_id= 285508
http://www.inb.gov.br/english/yellow.asp