how do i get out of the town?
(Takes off wasteland hillbilly disguise, puts on freedom fighters attire) "Oh, well, in that case my good wolf, you simply have 2 options."
#1: You can kill all the bad guys in the bar, but it's one hell of a fight, requiring either a TON of food for healing or the holy hand grenade.
(The holy hand grenade is bought for a fortune from the knight but it WILL 1-hit kill ANY AND ALL ENEMIES! It's basically a cheat item.)
#2: You can trick the bad guys from the bar into telling you their plans, talk to the barkeep, get the stash, and then face a MUCH easier fight.
(You might need to get 200 gunpowder, but I'm pretty sure it's not really a problem, I think barkeep gives you half or all of the cost.)
Good luck with all of this, after it's done, talk to the new trader caravan, and bargain for their info, it unlocks the world map and Grayditch.