Villages adjacent to each other (essentially forming a larger village) can be problematic. If you're asking about the location of a character who belongs to "the other" village they'll say the character is somewhere around there but they don't know where exactly (I think you get the same response when characters are outside of the village boundary for isolated villages).
I think I've seen the smith issue in such a merged village, with one half of the village claiming there's a smith in it, and the other half doesn't.