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Once found, the location can then be modified further to improve its efficiency and reduce the enemies that spawn outside of it, for which Explosives and Mining Potions can help. Examples include a large section of a Cavern, or a big room in the Dungeon. When looking for a good place for farming, wide and open areas are preferred. The basic idea of farming enemies is to find or build an area where they can be easily gathered and killed in one place.
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This becomes particularly important when large numbers of enemies are being killed and dropping items. If more items are dropped into the world, the oldest item will despawn. It's also important to know the limits on dropped items: while they do not expire, there is a worldwide limit of 400 such items that can exist at once. This allows the player to farm biome-exclusive enemies and their drops in a single convenient location. Many biomes can be artificially created by placing blocks pertaining to that biome.Invasions are not affected by these items, but Blood Moons and Solar Eclipses are. Contrarily, a Peace Candle, Calming Potion, and Sunflower will reduce spawn rates. Use of a Water Candle and/or a Battle Potion will increase spawn rates.Friendly NPC presence does not affect spawning during events such as the Blood Moon or invasions. If there are three friendly NPCs on screen, no enemies will spawn. Enemy spawns are suppressed near friendly NPCs, including not only the "town" NPCs, but the Traveling Merchant and the Skeleton Merchant.The Blood Moon warrants special mention, as it increases the universal spawn limit, meaning that it increases spawn rates anywhere in the world. Most of these events can be manually summoned by the player with an appropriate item. Additionally, they offer their own list of enemies. Various special events can increase the spawn rate and limits.These factors also change what type of enemies spawn, so you will need to pick the right location and time. Spawn rates are different depending on the Biome, depth, and the time of day.Hostile and friendly NPCs can only spawn in a 168x94 tiles area around the player, and there is a limit to how many enemies can exist in an area at the same time.An essential part of enemy farming is knowing the basics of NPC spawning.