Utilizing the high-resolution, large-scale LAOZI cosmological simulations we investigate the nature of the metal-poor ([Z/H] < −2) damped Lyman alpha systems (mpDLA) at z = 3. The following physical picture of mpDLAs emerges. The majority of mpDLAs inhabit regions 20 kpc from the host galaxy center on infalling cold gas streams originating from the intergalactic medium, with infall velocity of ∼ 100 km/s and temperature of ∼ 10 4 K. For each host galaxy, on average, about 1% of the area within a radius 150 kpc is covered by mpDLAs. The mpDLAs are relatively diffuse (n gas ∼ 10 −2 cm −3 ), Jeans quasi-stable, and have very low star formation rate (Σ 10 −4 M yr −1 kpc −2 ). As mpDLAs migrate inward to the galaxy center, they mix with high metallicity gas and stellar outflows in the process, removing themselves from the metal-poor category and rendering the central ( 5 kpc) regions of galaxies devoid of mpDLAs. Thus, the central regions of the host galaxies are populated by mostly metal-rich DLAs instead of mpDLAs. All observables of the simulated mpDLAs are in excellent agreement with observations, except the gas density, which is about a factor of ten lower than the value inferred observationally. However, the observationally inferred value is based on simplified assumptions that are not borne out in the simulations.