Moon Sugar is native to the sugarcane groves of the Tenmar, where the Khajiit believe the sugar to be "crystallized moonlight," brought to the Tenmar by the Topal Sea's twin tides. The Warrior Guard of the Mane enforce a strict measure of forbidding any humans from trespassing around the Tenmar Forest.
Dagi and Dagi-raht, two of the less common forms of Khajiit, live in the trees of the Tenmar forest. They can jump from one tree to another under a magical cover of silence, and take up positions in the higher branches that could not hold a Bosmer's weight. The Tojay, another form of Khajiit, also live in the Tenmar's southern jungles and marshes.[OOG 1]
In the laws and customs of the Khajiit of the Tenmar forests, "if a marsh cat was killed by an Argonian, his family were in disgrace till they retaliated by killing the Argonian, or another like it; but further, if a marsh cat was killed by a fall from a tree, his relatives would take their revenge by toppling the tree, and shattering its branches, and casting them to every part of the forest."