About 100,000 people live in South Stockton, that's about one-third of the city's population.
The grand jury report found that area has been underserved while crime, blight, and poverty have flourished.
Jury Foreman Ward Downs says more resources are needed to solve problems in South Stockton that range from code enforcement to cracking down on crime.
"It was just really easy to take us to corners where drug dealing was going on and houses were just infamous for all kinds of illegal activities."
Downs concedes the city's bankruptcy will make it harder to develop resources for South Stockton.
"As money starts becoming available, we would hope something gets done down there."
Downs said the study found that 45 percent of people in South Stockton lived below the poverty line.