The Gungans are the native inhabitants of the planet Naboo. They live under the planets surface in underground cities. Jar Jar comes from the city of Otoh Gunga. There could be more than one Gungan city. They seem to have been on the planet long before the naboo arrived.
The Gugans have ancient beliefs and traditions and style of clothing, meaning they've been on the planet for quite a while. The beings themselves are very smart yet lack a strong vocabulary.
Gungan government seems to be controled by a main king called a 'Boss'. That would indicate that this 'Boss' is responsible for his city. Not too sure on that though.
More to come...
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Star Wars Episode 1 Phantom Menace is (C)1999 Lucasfilms Ltd.