Talk:And the Winner Is.../@comment-58.106.232.86-20120513012338/@comment-4662143-20120513021041

Zuko was probably governing the Fire Nation at the time. The flashback clearly took place in Republic City (look closely at the beginning and you can see the rows of chairs in City Hall). Toph was obviously there given that she was Chief of Police, and Aang was, most probably, part of the city's government. That Katara herself isn't there is hardly proof of anything. She probably stayed at the South Pole because she liked it there.