Would need an enormous lag time to be realistic. If it takes 2 weeks just to make it from the Druids Grove to Baldur's Gate, under ideal circumstances, then time for someone from the Grove to get there, then time for them to mention your deeds to people, then more time for it to spread around the city, then folks in the city would have to actually RECOGNIZE that you are the ones they heard about...
Reputation beyond your group of comrades, or for events outside of the general area you are currently in has often struck my as a weak mechanic - one of the things I liked least in BG1/2.
