In chapter 5, what traditional dichotomy does Hawthorne begin to establish with the location of Hester's cottage?

I'm not sure what you mean by traditional dichotomy except
that I see a free person inflicting bondage upon
themselves.

Hester could have left this town and the shame
of the reputation she had come to acquire. But no, she chooses to
stay:

Here,
she said to herself, had been the scene of her guilt, and here should be the scene of
her earthly punishment; and so, perchance, the torture of her daily shame would at
length purge her soul, and work out another purity than that which she had
lost...

The "here" she
referred to is this New England town. Her cottage was indeed on the outskirts, but it
was an abandoned place which the magistrates were able to keep an eye on. Thus it became
another sort of prison.

This woman is free but keeps
herself imprisoned and under punishment. That is a dichotomy because what free person
would want to be confined? A Puritan one would. Puritans were good at accepting the
consequences of sin, but not the forgiveness of it.