Factionalism
By day 3 (after meeting with the Keepers the first time), players may choose to ally with the Hammerites, the Pagans, or both by doing them small favours. Allies are helpful since they will not attack you, and allow you to hide in their turf when you flee the City Watch (who you may never ally with).
Befriend the Hammerites by locating and destroying the large cockroaches that inhabit the city. For each one you destroy, you increase Hammerite friendliness by one point. You also befriend Hammerites by destroying any undead using Holy Water or Fire Arrows. This may take a little while, but the beetles are easy to find. Undead are even easier to find, but you may need to stock up on fire arrows to deal with them adequately.
Befriend the Pagans by locating green stones with the mark of the Trickster or by locating the elemental archway in the Pagan turf and firing a moss arrow into the target. The green stones are harder to find early in the game, so the elemental arch is a much better choice to befriend the Pagans. Simply shoot any one of the four purple nodes on the arch with an elemental arrow. Consider using moss arrows for this purpose; you can fire as many elemental arrows into the Pagans' elemental arch as you can afford to immediately ally them with you when the opportunity arises.
Moss arrows are more plentiful as you pick up many in the city; more if you don't use them. You can save your fire, gas, and water arrows for your missions.
Final Note: Killing, blackjacking, or looting from the Hammerites or Pagans will decrease your standing with that faction.