What's the deal with Eastview v. Westview?

In Episode 1, the local police explain to Woo and Rambeaux that there is no Westview, only Eastview. In Episode 8, Westview is a place with real people and an empty lot for Vision and Wanda's future home. Were the local police lying? Where'd these people come from? Where'd the original Westview come from?

Maybe i need to rewatch that scene with Woo and Darcy IDing peoole.