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I'm doing a very leisurely playthrough of Arena-- my fourth or fifth-- visiting every store and Mages Guild in every city, accepting every city ruler's quest, exploring a bit of the wilderness around each city, etc. I'm currently in Emperors Run, Valenwood and noticed something odd about the palace there.

The palace is in the middle of the southern city wall, but up in the northeast corner of the city is what (on the map) looks like a city gate but with a wall in front of it. Intrigued, I went to see what it looked like, but it's a palace gate. I clicked on it and was taken into the palace just like the "real" palace in the south.

When I exited, I was still outside the "extra" palace gate in the northeast. I had half expected to find myself down south outside the "real" palace, similar to how entering a city via any of its gates (if there are multiple city gates) will place you inside the city by the "main" gate.

I finally got around to exploring the wilderness outside that side of town, and there's a city gate in that spot on the outside. When you go through, it takes you (as with all "alternate" city gates) to the inside of the main city gate.

So from the inside it looks like a palace gate with a city gate visible behind it, and functions like the actual palace gate which is down in the south wall, but from the outside it looks and functions like a normal city gate.

I don't think I've ever noticed this type of quirk in any of the other cities in the game, but I'll be keeping watch for any more examples of it.