Lake Bonfire

If you are Neutral:

Magical Bonfire
The Chaos Lord, Escherion, has attacked this valley. The forces of GOOD and EVIL have united to stop this new threat. You must be GOOD or EVIL to continue on.

- Mobius

If you are Good:

Magical Bonfire
Hero! It's me Renn! I'm using this magical bonfire to speak with you. This Hydra that Escherion summoned can't be killed - cut off one head, and another just takes its place. The only way we'll beat is if we reimprison it!

Reimprison It?
Along the shores of this lake you'll find 3 Runestones. If we destroy them all, we'll seal the Hydra away for good. You'll need to collect 3 Hydra Fangs to shatter each of the Runestones - that's 9 total. Better get fighting!

- Lake Bonfire's Quest

If you are Evil:

Magical Bonfire
Hero! It's me Zio! I'm using this magical bonfire to speak with you. This Hydra that Escherion summoned can't be killed - cut off one head, and another just takes its place. The only way we'll beat is if we reimprison it!

Reimprison It?
Along the shores of this lake you'll find 3 Runestones. If we destroy them all, we'll seal the Hydra away for good. You'll need to collect 3 Hydra Fangs to shatter each of the Runestones - that's 9 total. Better get fighting!

- Lake Bonfire's Quest

After completing the 'The Lake Hydra' quest:

Magical Bonfire
Renn and Zio built this bonfire to help you destroy the rune shards to reimprison the Lake Hydra!

Location: Hydra Lake
Note: Also see Magical Bonfire.

Thanks to Hina.