You can make the level size quite large, the doted line box is the actual camera viewed area. You can set whether the camera follows the player or not as well on the fly.
I assume you are referring to a top down or isometric style map... Thus you could easily make a building in one area of a large layout that the camera is centered on until the player leaves then the camera can be set to scroll-to-player and will follow him through the land portion of the level.. you could easily teleport by simply moving the player and camera via setting player.x, player.y with a small sparkly poof....