Chapter 2 is not over though! William must proceed to the city of Ticoro.
Here's a hint... don't even waste your time taking the direct western route
from Midova to Ticoro, because a group of soldiers is going to stop you from
crossing a bridge halfway down that road. There is another way across this
river, but you have to backtrack all the way to Panizo to get there!!!
Slightly northwest of Panizo there is a canyon trough the mountains which
has a bridge across this river. If you proceed Northwest from this bridge
you will be able to visit the town of Waterfork. TIP: If you looked in the
cul-de-sac BEHIND the High Wizard you found a chest whose contents will be
of great interest to a certain resident of Waterfork! Continuing even
further Northwest from Waterfork you will finally be able to reach Ticoro.
By the way, particularly in this area do not constrain yourself to following
roads. With only slight derivations, the fastest way from Panizo to Ticora
is to keep going due Northwest and mostly ignore roads.

Entering Ticoro ends Chapter 2.