I've just put a mayor in a town in the far south central area of the map (taking it from an NPC mayor), so I suppose I'll be in the borderlands between these two southern kingdoms. Unless someone just decides to wipe out my mayor. I've recruited guards and upgraded traps, so it'll be interesting to see what happens.
Dungeoneering is a really good way of gathering gold. I've been making about 20,000 gold from each dungeon with healing and repair costs afterwards of only about 400 gold. I've also raided a couple of NPC controlled towns, but not got as much gold from them as the dungeons.