Pinewatch

Location
It's found North-East of Falkreath City, about half way between Falkreath and The Guardian Stones along the main road. An easy way to get to Pinewatch is to head directly west from Helgen. There is a bandit watchtower with a double rock fall trap just to the south of the house.

Pinewatch
On first inspection, Pinewatch appears to be a quaint farmhouse with crops growing out back. The door is locked and surprisingly it is untouched by all the bandit activity in the area. The house itself is typical Nordic style with a single large room and stairs leading to the basement. There is a secret passage in the basement that is opened by pressing a button right of the empty bookshelf on the lower level of the building.

Secret Passage
The secret passageway opens into a tunnel leading to a series of connected caverns. The cave system is comprised of ancient Nordic tombs and what appears to be an excavation site. Throughout these caverns the player can expect to encounter close to a dozen bandits in a series of fights in each room. It seems that a crew of bandits have slain a family of woodcutters and are using their home to ambush Khajiit caravans (their corpses can be found in a corner on the bottom level of the first cavern laying atop a trap door/disposal chute). The first few rooms are piled high with crates, barrels and boxes from the caravans the bandits have robbed.

There are several locked doors and chests that can be opened with varying arrays of loot behind them. The first is on the upper level of the first cavern. The player will find several notes mentioning "Rigel's" well protected treasure room.

Pinewatch Bandit's Sanctuary
The sanctuary is the actual living quarters of the bandits. There are more tombs and caverns that have been converted into a sleeping area, kitchen/ dining area and the bandit leader's room. The bandits have cleared at this portion of the tomb and killed the Draugr and left their corpses lying there. One of the locked doors here will contain an Unusual Gem (a Stone of Barenziah )and a trapped chest(adept).

You will discover a warning note stuck to the wall with a dagger in the hall leading to the dining area. The note warns the bandits not to try to sneak into the treasure room and is signed Rigel Strong Arm.

Rigel’s Room
After clearing the area of more bandits you will make your way into Rigel's room. There are multiple bone alarms hanging around the room to alert the leader of your intrusion. The bandit leader will come out to attack and you get your first look at the infamous Rigel Strong Arm and she cracks some good one-liners as she attacks you. Be sure to loot her for thePinewatch Key and Pinewatch Treasure Room Key. There is also a Workbench here.

One can also sneak past her entirely and pick the lock to the treasure room, although it is a master lock, so bring more than a few picks.

Treasure Room
Her keys unlock the next door, which leads to the treasure room and several traps for the unwary. The "bridge" has a dart trap, followed by a hallway with a swinging blades trap, then a battering ram trap to catch you running through the swing blades. Further down the hall you will come to the treasure room door which is protected by a flail trap. And just when you thought you were safe, you step up to the treasure pile and get skewered by a spear trap. The treasure room contains an altar loaded with jewels, ingots, valuable ore, and coins. There is also a chest nearby.

Notable Loot

 * Curious Silver Mold
 * Unusual Gem Unlock the door to the North-west side of the room with the dead Draugrs.
 * Skill Book: The Red Kitchen Reader (Sneak)
 * located in the House upstairs
 * or in the "kitchen" area of the sanctuary
 * maybe somewhere else
 * Plenty of potions
 * Some Chests with random loot

Quests

 * Silver Lining
 * No Stone Unturned

Crafting

 * Grindstone – located in the excavation room
 * Tanning Rack – outside the house
 * Workbench – located in Rigel’s room