Moonshine is typically made with corn mash as the main ingredient. The word moonshine is believed to be derived from the term  moonrakers  used for early English smugglers and the clandestine nature of the operations of illegal Appalachian distillers who produced and distributed whiskey.The distillation was done at night to avoid discovery.he settlers made their whiskey without aging it, and this is the same recipe that became traditional in the Appalachian area. In the early 20th century, moonshine became a key source of income for many Appalachian residents, since the limited road network made it difficult and expensive to transport corn crops.