City Council Meeting: Sidney interrupts the Mayor to say he has something to present. Emma backs him up. Regina tries to shut them down, but when Emma accuses her of stealing thousands of dollars to build herself a second home, the townsfolk grumble. Emma presents her "evidence." Regina is smugness itself as she concedes Emma's accusations and then explains she was building a house -- a playhouse -- a new castle-like play structure, for Henry and the children of Storybrooke. "So there you have it, Ms. Swan. You've exposed me for who I really am. I hope you're satisfied." I don't want to take the time or effort to criticize the Show about whether or not Regina did all this behind the back of the City Council. For me, it's easier to accept/assume that she did everything the right way (i.e. got permission from the Council) and then hid the evidence of her due diligence, so that she could set up Emma. Throughout this scene, Gold cringes for Emma. At the climax, Sidney acts properly chagrinned, as if he too has been fooled.
Enchanted Forest, Knifingham Palace, King's Chamber, Night: Genie brings the worst ever CGI viper to a sleeping Leopold's chamber, whispers, "Forgive me," (for that CGI? Nevah!!!!) and then sets the viper loose in the king's bed. The two heads bite both sides of Leopold's neck (as wishes always do). As the king lays dying, Genie confesses he gave the mirror to Queenie, but then blathers about being forever in Leopold's debt, which is pretty fricking meaningless, since the king's forever is set to expire in about three seconds. Genie goes on to say that just as Leopold freed Genie, Genie must free Queenie. The king's dying words hammer home the point which was already pounded out the moment Genie laid eyes on Queenie: "You were right. I never should have made a wish."
City Hall, Exterior, Day: Gold approaches Sidney and Emma, who are watching Regina from a safe distance. Gold tells Emma that she needs a strong ally in her efforts to take down Regina. Emma's all, "Thanks, but no thanks." Regina approaches, tells Sidney to take a hike, and then lays the smack down on Emma. She needs to stop breaking the law and uphold it, as is her duty. And even though Emma contends that she knows Regina is bad to the bone, Regina doesn't care. Emma needs to understand Regina now has enough reason to swear out a restraining order against her, where Henry is concerned. "You don't get to see my son unless I say so. And right now? I don't say so."