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Putting NPCs where they belong is an oversimplification for a world with any verisimilitude. Take the proprietor of a store who is lucky enough to have a home not attached to the store. Where does he belong? The store? His home? The tavern where he spends every waking hour outside the store to dodge his shrew of a wife? The brothel he frequents for the same reason?
NPCs in a single location yield unrealistic worlds.
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