If I remember right Larklast would be the 2nd city? if it isn't, oops, but judging by your level probably. If memory serves, you need to talk to the Mayor and complete his quest, and while there might be some more quests you need to do before you can go (I don't remember as I just usually 100% the town then leave) you go back to the tree he asked you to investigate, and past there was a new area back when I played