My group has rolling DMs, but we've run into a bit of trouble concerning the non-core races. One of the DMs (who we shall refer to as DMa) is insistent that any sort of human settlement, regardless of general alignment, would kill non-core races on sight (since they are 'monsters') and that even Paladins and such would hold no problem with this since 'monsters are evil'.
Another DM (referred herein as DMb) takes a different stance, that only generally evil non-core races would be driven forcibly out of towns, but only killed if they resisted or looked violent. Other races simply being the subject of suspicion. Good aligned towns however are more accepting than evil ones.
Then the last DM (now DMc) takes a third interpretation, that size rather than alignment should generally dictate how non-core races are perceived. Smaller towns will simply not allow unusual races in (whether they kill them or shoo them off a matter of alignment) while larger towns and cities would be paranoid of them (with evil ones taking advantage of them and guards not caring, and good ones being ready to pounce on any illegal thing they did).
It's going to be my turn to DM soon though, and rather than bickering like DMa, DMb, and DMc do about setting, I was wanting to know what is the cannon for this kind of thing?