torstan I think the location of the keep / overseerer should be on top of the cliff to be able to "oversee" LOL the work / workers from the perspective of the boss as well as being a more defensible location than down in a hole as Korash has pointed out. Say at your location #7 on the accessible route into the village, either the east or west location would give views down the road access ways for either alerting of danger or incoming shipments that may arrive overland. ymmv