The Wild Wood had existed since the time of Arthur and Morgana's childhood. They often used to play in the woods along with Arthur's betrothed, Guinevere. The Wood was also home to several trolls and Dwoza Trollmarket was created within it.
However, after Guinevere's death at the hands of a Stalkling, Arthur became hell-bent on removing all magical creatures from the face of the Earth and started a crusade against them. However, he was persuaded to let them be by Morgana. After this, Arthur decreed that if any magical being were to leave the Wood and enter Camelot, it would be put to death.
The Wild Wood became an important location during the Battle of Killahead Bridge.