Seen here is a mock up of a location card. This is not the final image by any means. The actual graphic will be changed this coming week, but this one gives the idea we are going for. The arrows indicate how this card can attach to other location cards. As of now the direction of the arrow doesn't matter, you simply place the cards so that the arrows are touching.
Locations make up the entirety of your own, as well as your enemies' domains. Currently you gain control of a location through subjugation (using your dragon's majesty rating), thus adding it to your territory. Distance is abstract and measured solely in cards, each one you wish to move through costs a single movement point, so how you arrange locations in your territory is important. You want your resources close by so that you can fly out and claim them, but you don't want to make it too easy for rivals to pillage your settlements, and you certainly don't want to allow heroes a fast route to your lair.
Nothing is set in stone, though.
You can spend your action flying out over your territory looking for alternate routes between places. Depending on how high your flight rating is you can reposition one or more of your cards to change the landscape and bring juicy settlements closer to your lair while pushing dangerous or meager ones further out; another abstraction of the effort your dragon takes to destroy old routes and blaze a trail to create new ones.