DevoRevo
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Then I'll put it this way: in Ashan, there's a Free City - Hammerfall. It's located southeast of the Duchy of Wolves, on the coast of the Jade Ocean. So, on the maps of Heroes of Might and Magic VII, as well as in the campaign for the Haven faction, the city is presented both as an environment consisting of walls, houses, and other buildings, and as three (or four) objects, which are essentially the cities themselves (technically), but according to the lore, it's all one city.
It's a game convention. That is, as I understand it, you lean towards the version that the city itself wasn't shown at all, and the castles on the map are simply buildings within it? Well, that's also a good version, if I understand you correctly.