When the curse broke and the magic was brought back, it was restored to all those who attained it Fairytale Land. While Rumpelstiltskin and Regina now have magic, they were forced to retreat and hide because the fairies were no longer playing by the rules. They would do absolutely anything to end the tyranny of dark magic.
Rumpel and Belle stayed in his shop which was enchanted to where no one but the two of them could enter unless invited.
Snow White, Prince Charming, Emma Swan, and Henry took over the townhouse and Regina's house. Emma continued her job as sheriff while Snow and Charming served as the mayors of Storybrooke during this awkward time of confusion. The curse was broken, yet they still haven't returned home. The sheriff's office/jail was put under fairy protection. They charmed it with a clear domelike enchantment that prohibited the use of any magic whatsoever. This charm can only work in a small radius, and cannot cover the whole town efficiently.
Regina went into deep hiding alone. Sidney Glass was being held prisoner by Emma, and there is no way he is getting out of there. Regina used the fake library that used to house Maleficent, and she used the same enchantment that Rumpel did. She also formed a tunnel leading from the dungeon to the woods as an emergency escape route since all of the heat was on her.
Rumpel hates her for lying about Belle's death and imprisoning her. Regina hates him for manipulating the curse to fit his own needs. Consequently, they have been both avoiding and looking for each other. Because they are the top two villains in both realms, they know each other the best. Each knows what makes the other tick. They both know what it takes to win the game, and they are both willing to raise the stakes. They are both out-casted and hated just like they used to be.
Being alone can really take a toll on someone. Regina kept reminding herself that no matter how much she wanted to, she couldn't go looking for Henry. She knew he was being guarded in case she came around and everyone was looking for her. However, solitary confinement wounded her. And there is nothing more dangerous than a wounded animal.