I read on UESP wiki that you could "farm" by breaking into a house, resting, and then waiting for an enemy to appear. Indeed, I briefly tried this. However, I would like to know if there is an alternative, as I wish to play a Lawful Good type of character.

Hey, Arena is getting some love!

If you camp outside of cities a lot, plenty of enemies should be thrown at you. Especially at night. Same thing with many dungeons.

Thanks, Rader! I started playing Arena a long time ago, but gave up because I thought it was too hard. I suppose I got too used to Oblivion and Skyrim's leveling system. However, I've found that having tougher enemies makes it more satisfying when you finally defeat them.

No problem! Yeah, Arena is the most different of the series and certainly not the best, but I still think it is a great game. And it is the progenitor of the series after all. I also found Arena to be the hardest of the main series by far. I died at least 25 times in the Imperial Dungeon at the beginning. You can also check out uesp.net as well, as it is a very useful tool for all things Elder Scrolls.

Stonekeep, the first main quest dungeon you go to after the Imperial Dungeon, is also pretty good for farming at early levels. IIRC there aren't any enemies that can cast elemental spells at you here, so you won't need to worry about Resist X potions here (and if there are, then there aren't many). It also has ghouls which are tough enemies early on, but give good XP and sometimes some pretty good loot when you are starting out. Some good loot and quite a bit of gold can be found throughout Stonekeep too.

Along with walking at night outside the city walls, just strolling around the towns and cities at night (I like to count how many different working girls are lurking around the streetlamps). It's guarantied to attract all sorts of enemies. Night time is very dangerous in Arena.

To some extent, I wish that Morrowind/Oblivion/Skyrim made night-time dangerous like Arena and Daggerfall did. Within reason of course, so not quite as much as Arena and Daggerfall. But a little more trepidation to be had when away from civilization at dark hours would be neat.