The Ripper Demon cave is found just east of the Al Kharid's eastern gate, west of Abbey of St. Elspeth Citharede. Its entrance is described as "A dark tunnel leading under the abbey." It is where the Ripper Demons reside. It can also be accessed from the desert.
Zarosian cultist Jebediah Omnis decieved a mining company into opening up the caves under the guise of a simple paid job. Jebediah suspected that the caves were the final resting place of the Ripper Demon that was killed by St. Elspeth, and sent the miners to both unearth the caves and trap them within so that they could serve as hosts for the freshly resurrected Chthonian parasites.