Well, the bears would probably be in a different area.  Bears and Wolves don't usually hang out together.  I was thinking that the wolves would be in open plains or fields and fight as packs.  The bears could be in either a rockier area or they could be in the forests.  One thing that I'm not sure of is whether or not to include those bloody foxes.  If we do, they would be in the deepest parts of the forest and would hunt in pairs. 

With this setup, the wild dogs would be confined to the western side of town in the plains and they probably are only active during the day.  The bears and foxes are in the woods but the foxes are only active at night while the bears are always there.  The wolves are always active but they're more numerous and aggressive at night and stay in the plains areas to the east of town for the most part.

For loot, here's what I have in mind.

Wolves[lvl 3-5]: Wolf hide (one step above Wild Dog Hide), Wolf's Fang (level 4 dagger, rare drop from pack leaders at night only), Wolf Tooth (material for various tooth, fang, or bone accessories)

Bears[lvl5]: Bear Sinew Bow (level 5 bow - Rare drop requires final blow to be a bowshot), Bear Hide (level 5-10 leather crafting), Bear Claws (level 5-10 weapon crafting/potion ingredient)

Foxes[lvl 5]: Fox Eye (level 5-15 potion ingredient), Black Fox Fur (level 5-10 leather crafting), Fox Blood Vial (level five required to wear-Amulet type accessory that also gives a bonus to anyone trying to tame a Black Fox as a pet)

Wild Dogs[lvl 2]: Wild Dog Hide (low end leather crafting item), Rancid Meat (weak poison ingredient), more money per kill than the wolves.[@BlackPanther][@Zelosse]