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dystopia (n.)

"imaginary bad place," 1952, from dys- "bad, abnormal" + ending abstracted from utopia. Earlier in medical use, "displacement of an organ" (by 1844), with second element from Greek topos "place" (see topos). Dystopian was used in the non-medical sense in 1868 by J.S. Mill:

I may be permitted, as one who, in common with many of my betters, have been subjected to the charge of being Utopian, to congratulate the Government on having joined that goodly company. It is, perhaps, too complimentary to call them Utopians, they ought rather to be called dys-topians, cacotopians. What is commonly called Utopian is something too good to be practicable; but what they appear favour is too bad to be practicable. [speech, March 12, 1868]

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Definitions of dystopia from WordNet

dystopia (n.)
state in which the conditions of life are extremely bad as from deprivation or oppression or terror;
dystopia (n.)
a work of fiction describing an imaginary place where life is extremely bad because of deprivation or oppression or terror;
From wordnet.princeton.edu