Kerr-Avon Labs was a "research and development site" owned by Fatboy Industries, and under the personal direction of Manservant Neville. It was a front for Neville's operation to forcibly extract the pineal glands of mediums, soothsayers, and succubi. The lab was located next to a manmade lake and waterfall, which served to camouflage the psychic waves generated by the pineal gland extraction, and block them from being picked up by the Middleman's HEYDAR.
Eventually, the Middleman and Wendy Watson discovered the true nature of Kerr-Avon Labs, but as he had them bugged, Manservant Neville was able to clear out most of the evidence of his activites before they arrived. He left behind a combat droid to kill the pair, but the Middleman succeeded in destroying it.