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NPCs are the current source of Gold in-game and are also a source of experience.

Locations

ThatDanceBoy/The Avatar - Strange Island - ask his spirit "Why?"

Fire soldiers - South Pole - northwest of the village - drops 10 gold and 10 Exp.

Sand benders - Si Long Desert - west of the library tower.

Sand leaders - Si Long Desert -  far west end of the Desert.

Bandits - North Pole - everywhere except the city.

Difficulty

NPCs drop varying amounts of gold for purchasing objects.

Bandits give the most while soldiers give the least (10 gold).

Leaders reward more exp than Bandits and Soldiers.

ThatDanceBoy gives you a full level up.

If an enemy falls into water, they will not respawn until the world cleans.

Beware when fighting Sand leaders and Bandits - They bend and it takes 3 successful hits from a bandit to even take down most players.

The sand bandit will batter you and the leaders will attack you with bending.