@Hardgamer - that's right, I remember now. He even started building a highway to your land. Since you haven't incorporated yet, tecnically there's no rule against relocating. Just make sure you can make it back to the Capital. The rules do allow building a small rest stop as long as you use the same one and don't build new ones all the time. That's to avoid file bloat. Also, unless you buy the land it's on (after incorporating) anyone can use it or pilfer it, too. The Trading Post I built was meant to be available as a rest stop for anyone needing it. Now it's become a major store location.
@Beboy, I don't think it would be fair since everyone else has had to explore in cruel. Of course it's hard - it's cruel! Use this time as practice staying alive in cruel. It seems any place north of the Capital or west of the deserted city is available. I would suggest that once you find a spot that looks decent, save the game. Then explore to find a good way back to the Capital. If you die on the way, reload the saved game and keep trying. That's how I did it. It originally took me two days to make it back but once I had the route figured out, it's just barely under a day's walk.
There is a lot of cold areas north of the Capital. Or you could try going south and west, around and past Berclavia. If you avoid the cold regions, there's a lot of desert areas. That would put you more or less between Berclavia and Stanimosity. Just remember that there has to be "neutral zones" between each city of at least 32 blocks. (That's a new rule.)
For both: if you guys end up needing a rest stop enroute to the Capital, the Council may build one and make it public land. Later, it might add a road out that way to make travel easier.