Salem

I've consulted Wikipedia and it appears that first tobacco industry started years before Salem and Boston were founded. It is quite some way to the south from our location, but it's already exported to England.

On the other hand smoking is prohibited by puritan rules and that's who we actually are. Still it prohibits wearing exquisite dress and I guess it prohibits things like killing and stealing too. Which doesn't stop players from doing all these.

I see tobacco and pipes being simply decorative things like clothing (for now). When used it results a smoking animation and various puffs of smoke (like in LotRO).

This game is "supposed" to be anyway, a fantastical version of Colonial America, eventually there's supposed to Withcraft, monsters and all manner of things that don't "really" go bump in the night so historical accuracy presumably isn't a big thing. For example, they already have a working model for the Jersey Devil which didn't even exist in mythology until I think the 17 or 1800's. Also? Tumbleweeds don't exist outside of the desert southwest so yeah, smoking should be the least of the historical inaccuracies.

And we aren't all puritans. I bet some puritans smoked in secret, too ;)