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Another option is to add merchants to Region:Urban groups for the neighborhoods. This works extremely well for large cities with multiple districts but would likely suit your needs for villages as well with just one Region:Urban group to contain the village locations.
My containers are arranged as the following: Region:Geographical <-- Community <-- Region:Urban <-- Merchant
I do not put Community's into Region:Political's because those can change over time. Rather I link to them and create relationships.
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