Northeastern side of Bearback Lake. Just South of the road to Rockcliff.
http://beniesbuilds.com/img/Wurm/Road_to_Dragon_Forest.png
''Direction to Dragon Forest from NewTown''
Getting to Dragon Forest is easy. Just go West from [[Newtown]] and follow what is known as the Bearback Highway until you get to the old crossroads. Make a left and go south, passing the sign to Rockcliff. 30 seconds after you pass it, look for the entrance on your right.