Deadwood Lumber Mill is the local lumbermill. It lies just north of Dengeir's House along the river. Although the mill is unmarked on the map, it serves a very important function in Falkreath's infrastructure and provides wood to the outlying areas as well.
The mill is run and tended to by Bolund, who is less than pleasant to "provincial" wanderers. Bolund can sell sawn logs if Hearthfire is installed.