Below Neion

If Ithaca city were close to Mount Neriton, Telemachos wouldn't have described it as lying below Neion, he would certainly have used the island's main feature as reference. It's therefore quite obvious the city doesn't lie at the foot of Neriton but closer to Neion and, as we've previously learned from Mentes, nowhere near his harbour Castri to the south of Neion. This means the city has to be somewhere in the purple area.

Neion

Neriton

City?

We have come from Ithaca that is below Neion.

While Mount Neriton clearly is the main feature on the island, that doesn't necessarily have to apply to the city of Ithaca. Telemachos tells Nestor in Pylos where he comes from:

Fountain

Harbour

Let's see what we've got so far.

Since we determined Vasiliki bay is the harbour of Ithaca, the city wouldn't be near other harbours on the south coast. Finally, it can't be too far away from the well-wrought fountain either. This means we can limit our investigations to the darker patch in the purple area.