Hey, buffs. I was planning on making a town mod for morrowind, and I was wondering if you guys knew of any towns of vvardenfell that didn't make it into the game, or were in Arena, or were 'removed from lore' somewhere in between. The only one I could find was Stonewood, but I think that is either the lower west gash, or balmora. Thanks!

Yup.

Bal = Stone
Mora = Wood (Land)

I don't know any lost cities. You could check http://www.imperial-library.info/maps/maps_morrowind.shtml from Arena or the http://www.imperial-library.info/pge/morrowind.shtml as both are the primary sources for info on Morrowind before Morrowind but I doubt there is anything.