Gaia

Buy everyone a Ruby armlet and protect ring. These are basically the best armour in the game that can be bought. Now, go to the far left of town, and up. Keep going till you're at the item shop. Keep going up and you'll see the revive house. Go left, and down through the little maze till you come at a pond. The faerie will be here, and will give you the Oxyale. Now, go back to Onlak and talk to the girl by the barrel that was talking about mermaids. She'll disappear with the wind, as she was dead to begin with. Now, take the barrel and kick some watery ass.