Deerwood Forest is a forest area in Eurish located by the Kingdom of Mercia's territory (similar to Northamer's Great Forest and its location to Mobotropolis). After Dr. Ivo Robotnik expanded his global empire and took over the Kingdom of Mercia, he placed his sub-boss, the High Sheriff, in charge of Mercia to round up and roboticize locals and suppress any resistance groups. Those who managed to escape captured and fled to Deerwood forest. Rob o' the Hedge became the king of Deerwood during the time the High Sheriff controlled Mercia. He established the Crazy Kritter Freedom Fighters to oppose the High Sheriff, and the group operated from within Deerwood until all of its members except Rob were captured and roboticized. The Lost Tribe wandered through Deerwood forest during their quest to locate Albion. Since the High Sheriff was sent to Knothole and had his free will restored, the Kingdom of Mercia was reformed into the Kingdom of Snottingham where Rob is presumably still king. Deerwood is likely a part of the new kingdom's territories.
Hideaway is a hidden village located deep in Mercia's Deerwood Forest. It serves as a refuge for people fleeing the Eggman Empire as well as a base of operations for the Mercian Freedom Fighters. While staying in the village, Mighty the Armadillo and Ray the Flying Squirrel assisted the Freedom Fighters in turning back the local Dark Egg Legion when the latter began setting fire to the forest in order to reveal Hideaway's location.