Regional Alert Level 3 refers to a situation in which civilian life, even taking into account far rougher Oceanykan standards, is constantly disrupted by violence or crime. Generally these are areas where conflicts of interests are occurring between tribes, groups, armies, states, cartels, gangs, militias, etc. These would be somewhat comparable to the low intensity conflicts of the third world where regular life can still carry on, it's just harder and more dangerous. Most of the Australian Outback is of this classification due to it being a large, uninhabited territory where authority is thin or impossible.