While I do not like the idea that there are gnomes living in this area however, it is not logical since they are not sailors. However, I do enjoy the concept. The trade between the new continent as well as the rest of the world is controlled by the customs authorities, which taxes a lot and makes it difficult, etc.
Some people have been turning to illegal smugglers and pirates to trade due to anger towards the customs authorities. There are a myriad of tasks that can aid you in understanding the conflicts between these powers. You can also choose to support either side or the other. Colonial Boston is the closest thing to the real world.
Every area of Runescape is a region of medieval Europe or the close east. For example, Fremmeniks-Scandanavia, Karamja-Sub-Saharan Africa, Asgarnia/Misthalin/Kandarin-England, Morytania-Eastern Europe, Al Kharid-Arabia.
That really only leaves Mediterranean/Southern Europe, so it would be logical for the new continent to resemble Italy/Spain/Greece. Iron age ideas could be incorporated into this, I think. For instance, you could have two cities that resemble Carthage and Rome (Carthage utilizes elephants, please).
They're not fighting but were in the past. They are currently in a tense standoff. The route between them is heavily guarded and you will be attacked by fierce enemies if you attempt to travel along the road. You can choose to have either one or two cities, and then have quests that your character must fight against the bad city. You could also put them all on the same level.
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