The Waterwood stands adjacent to The Mire and is bounded by the Tarendrelle and Manetherendrelle rivers. In addition to being a floodplain, it is fed by continuous flows from the Winespring Water which branch and divide in the area. As a result, travelers to the Waterwood encounter a bewildering tangle of ponds, streams, and willow trees. Although not as treacherous as The Mire, the area does possess the occasional boghole capable of swallowing a cow deep enough that it must be dug out. Consistent flooding from the Winespring Water prevents farming in the Waterwood, though villagers from Emond's Field, Watch Hill, and Deven Ride have been known to journey to the wood in search of game. It is also the area where Rand al'Thor learned to swim.
Historians believe that during the time when Manetheren ruled the region, the area was dry and sparsely wooded. During the final years of the Trolloc Wars a conflict known as the Battle of the Tarendrelle River was fought east of the Waterwood between the Army of Manetheren and a vast host of Shadowspawn. Matrim Cauthon possesses the memories of King Aemon al Caar al Thorin as he used the swamplands of The Mire to protect the right flanks of his army while defending a strategic area that is now near the eastern edge of the Waterwood. After his army was defeated, King Aemon was forced into a fighting retreat ending at a crossroads that would come to be known as Aemon's Field. The subsequent Battle of Aemon's Field resulted in the annihilation of the Army of Manetheren and ended with the death of the king and the destruction of his ultra-elite guard, the Band of the Red Hand. Legend holds that when these heroes fell, the Winespring burst forth upon the location where they perished to forever mark their sacrifice. The subsequent creation of the Winespring Water led to flooding in the eastern Manetheren heartland, and marks the birth of the Waterwood.