Step 1: Understanding the context.
The squatters living in the periphery of Delhi were poor individuals who migrated from rural areas. They came in search of better economic opportunities, but most ended up in slums on the outskirts of the city due to their limited resources.
Step 2: Elaborating on their origin.
These squatters primarily came from villages in neighboring states. With the promise of work and better living conditions, they made their way to Delhi but ended up living in substandard conditions on the periphery of the city.
Step 3: Conclusion.
Therefore, the squatters came from rural areas looking for a better life but often ended up in the slums due to a lack of resources or opportunities.
Final Answer: \[ \boxed{\text{The squatters living in the periphery of Delhi came from rural areas, mainly neighboring states, seeking better opportunities and work, but ended up living in the slums on the outskirts of the city.}} \]