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I killed some Imperial Soldiers in the Reach far away from the city, then ported back to Markarth via fast travel. I have no bounty in the Reach, I checked, but all the guards and NPCs in the city either run or attack me on sight. Nobody ever confronted me about having a bounty even when I sheathed my weapon repeatedly.

I tried to run away to get them to stop, but that only ended with me standing a long ways outside the city with 20+ guards, thalmor, and the jarl, his housecarl, and his steward all attacking me. I used "setbountygold" (or whatever that command is) and it did nothing. I tried stealing cabbages, but I never got any bounty notifications.

What is going on and how can I stop the guards being hostile?

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I have no answer, but I just want to let you know that the image of the entire population of Markarth chasing you through the Reach made me laugh. – BigStuuu Aug 13 '12 at 9:58
@BigStuuu did the Benny Hill theme play in your mind while you were picturing it? – kotekzot Aug 13 '12 at 13:47
It's always Markarth with this question... Are you sure this isn't a possible duplicate of Can I secretly kill every guard in a town? You could be looking for the wrong solution... – LessPop_MoreFizz Aug 13 '12 at 17:07
MoreFizz_LessBite! – kalina Aug 13 '12 at 17:33
I have already finished that quest line. I guess I have to start over. Thanks anyways for the answers everyone! – homeyhomehome Aug 13 '12 at 21:52

Try killing a chicken in one of the farms. Killing a chicken is considered a crime. They are considered NPC owned in the farm that you find them. Killing one chicken will net you a small bounty, which you can payoff and it should reset this for you.

Usually this has worked for me. If this does not work, the only option is to reload a prior save game.

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I think he tried everything else that counts as a crime and didn't work as he said: "I tried stealing cabbages, but I never got any bounty notifications.". This might count as killing chickens. – Jim Oct 18 '15 at 5:42
Really? Killing chickens? – Jim Jones Mar 6 at 20:51

You could use the console code TCAI to toggle everybody's ability to fight, but that's probably not what you want. Calm spells are another temporary solution. Other than that, have you tried waiting 30 days away from the Reach and coming back? A more random thing to try would be stealing something cheap in Markarth, then paying the bounty (find a bounty hunter if the guards continue to ignore your yielding). If that doesn't work, you just might have to reload to the previous save.

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