The Forest of Magic (Mahou no Mori, 魔法の森) is a focal point for all things evil, ominous, and repulsive. It's a place whose true nature is clouded by strange rumours and weird happenstance. Once you look beyond the human-eating plants and inevitable, horrible misfortune that will surely befall all who even think of trespassing into the forest, it's also a fairly nice place to live for people who don't like to be disturbed.
Marisa's house, where she keeps the many items she borrows, is located in the forest. She also runs the Kirisame Magic Shop from this location. Alice's house of dolls is also there. Near both their houses is the tree where the Three Mischievous Fairies live. Rounding out the main attractions is Kourindou, Rinnosuke's shop of odds and ends (including many objects from the outside world), which is found on the very border of the forest itself.