Episode 8 of The Legend of Korra takes place almost directly after episode 7. Since Asami, Mako and Bolin are no longer welcome in Hiroshi Sato’s mansion, the episode starts off by showing the gang move into their new home: Air Temple Island.
As the gang begins to settle in, Tenzin announces that Lin Bei Fong has officially resigned from her duty as Chief Officer of Republic City. Once the news is heard, Tenzin and the gang decide to go down to City Hall to see the new Chief Officer, who explains that the police force will essentially be working with Tarlock to dismantle the Equalist Regime.
Korra is not happy with this.
After the gang leaves City Hall, they eventually have a small run in with a few Equalist Members. Team Avatar makes quick work of the enemies, but a much more serious threat arrives afterwards.