What to do about hostiles in towns?

Still quite new to the game but I got my third real character (real as in surviving over the first 6 levels) to level 26.

When I got to Binip, it was full of these multiplying slimes — I don't know what they were called. I couldn't complete the quest there or do anything there. I fought them for a while but it seemed like a losing battle. And there didn't seem to be anything else in the town. No other NPCs, etc.

Now I got to Yd Freehold. I took one step down and outside of the city and there was a swarm of tough hostiles. So I went immediately one step back up into the city. I thought all the turrets and powerful Yd townsfolk would make short work on the enemies. But that wasn't what happened. So I had to engage them in the town. One of my duplicates must have hit a local because now the frog-like mayor guy ("impossible") is hostile toward me.

I'm not sure what to do now. This was going to be a bit of a base for me, as well as a good marketplace.

Is there anyway to reset these towns? Or is there basically no turning this around this playthrough? Also, if these towns are now basically no-go areas for me, what should my course of action be? Where can I get high-level armor and weapons if not Yd?

Thanks.