a section, as of a city or town, characterized by shanties and crudely built houses.
a whole town or city that is chiefly made up of shantylike houses.

1880–85; shanty1 + town Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
shantytown (ˈʃæntɪˌtaʊn)
a town or section of a town or city inhabited by very poor people living in shanties, esp in a developing country

Collins English Dictionary - Complete & Unabridged 10th Edition
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Example sentences
Within hours, troops swept into the shantytown and burned down every structure
  except a bank.
It was a shantytown, with hundreds and hundreds of houses packed on to one
  hillside near the river.
It can also alleviate some of the pain of shantytown life with appropriate
The family has settled into its mostly renovated house, which adjoins a muddy
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