Is already part of the Kokiri Forest. Do you remember from OoT, the village? It'd be something like that: when Link first crosses the area, it will be an ilussion; when Link gets the cog, the illusion will dissapear. This ilussion was active as long the cog wasn't retrieved. After that, a sidequest related with the king of the deku will make some deku appear her. At the beginning, it'll have a couple of shops, and some trees growing, but as long Link keeps helping the king, more deku will arive and begin bussines and that. To explain it better, have you played Pokemon Black or White? In the White Forest/Black City, you needed to get people to make the grass grow, and buildings to appear. Something like that will be here. The king will tell you to do something, and then another thing, and then another, and like that, until the town thrives. Of course, this side will require of completing some other temples.