Carpenter ants can be distinguished from termites by their larger size and shape of their antennae, waist and wings. Besides being objectionable by their presence, carpenter ants damage wood by hollowing it out for nesting. They excavate galleries in wood which have a smooth, sandpapered appearance. Wood which has been damaged by carpenter ants contains no mud-like material, as is the case with termites. Carpenter ants nest in both moist and dry wood, but prefer wood which is moist. Carpenter ants may establish nests in a number of different locations. It is important to realize that these locations can be either inside or outside the structure.