Goatswood is a region in England's Severn Valley, about 40 miles south of Gloucester. It encompasses the wood itself, the small market town of Goatswood to the east of the wood and several small hamlets such as Clotton and Mercy Hill to the west.

The wood has been spreading westwards in recent decades, against the normal trend for British forests, and several old farms have been completely swallowed by its advance. Apart from the town of Goatswood itself, which is separated from the rest of the region by the body of the forest, the Goatswood region has no paved roads, and nor is it connected to the national electricity or water grids. Its people live in harmony with the land, a lifestyle unchanged for centuries.

The people there are very insular, and there is much inbreeding and little education. Many of the area's settlements appear on no commonly available maps.

After visiting the area, Withers and Bartlett came to believe the following about the Goatswood region:

• Its people are pagans, following old gods, especially Shub-Niggurath. Their leaders are capable of magic.
• The wood is inhabited by half-human, satyr-like creatures that interact with, and may breed with, the locals
• The influence of Shub-Niggurath is causing the spread of the Forest.

Nug's Farm is in the Goatswood region, close by the hamlet of Mercy Hill (which was destroyed by Shub-Niggurath's spawn in mid-December, 1929). The farm's owner, Hillary Quarrie is now in charge of the Goatswood cult.