Wikis can be used in class as a collaborative tool for creating group web content. The entire class can work on a document or project together, or students can each have their own wiki and work on it with you and their classmates. There is also the option to use wikis using Moodle Groups.
To Setup a Wiki
To add a Wiki activity:
1. Log in and go to your course; click Turn editing on in the upper right corner of the screen.
2. A series of “Add an activity or resource” drop down menus will appear. Click one of them in your desired topic section and select Wiki from the list.
3. Type a name for the Wiki and a description of the assignment, if you like.
4. Give the first page of your Wiki a name and choose the Wiki mode. Leave the default format as HTML and Check Force format.
5. Click Save and return to course. Students can now create pages and edit the wiki.
For more information about wikis within Moodle, see http://docs.moodle.org/32/en/Using_Wiki