» Wed Jun 13, 2012 1:42 pm
There are two in the city of Markarth. One is inside Understone Keep, go in and go straight until you reach the stone steps that lead up to the Jarl's throne. When you get to the top of the big stairway, hang a right in that big open area and you will see the open doorway of the forge in the wall you are now facing. It's run by a male Orc blacksmith.
The other smithy is run by his sister and is outside, it is on the other side of city from the marketplace and the inn. When you first go into Markarth, turn left immediately and go across the first little bridge you come to. Turn right and look uphill towards the waterfalls, the smithy is in an open structure sitting on a platform that straddles the river.
You can also find it by leaving Understone Keep and turning right and then left down the hill, it will be there on your right if you go that way.