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Essentially your goal here is to make it to the far south and enter the Dam Site from its west side to raise or lower the water level for Tien's Landing. However, you'll have the opportunity to go into the Quarry for more experience points and rewards, and will also find a quest here dealing with some dead orphans that needs to be completed before you close the dam (unless you plan to sabotage it, in which case you have plenty of time to do the quest).
1 - Arrival
Having used the Ruins Key back at the Dam Site, you're free to explore these recently uncovered ruins.
2 - Lotus Assassin Camp
After a short cutscene showing a Lotus Assassin summoning a group of Rat Demons to search for "special gems", you can enter this area to wipe out the Imperial Lieutenant and two Imperial Soldiers left behind. When all three are dead, you'll automatically receive the Gem of Thief's Sense.
3 - Ceramic Urn
This trapped urn contains a nice pile of silver and a Flawed Warrior Gem.
4 - Spirit Font
Meditating at a Spirit Font will restore all of your character's Health and Chi.
5 - Bones
Sift through these bones to uncover some silver and possibly even an Inferior Intimidation Gem.
6 - Bones
These bones will relinquish some more silver.
7 - Assassin Supplies
Open this supply chest to find some Dragon Powder for 100 experience points. You can use the powder shortly to make use of some Lotus Assassin rockets.
8 - Cowardly Rat Demon
Once you've brought this Rat Demon down to a minimal amount of health, he will surrender and offer to provide you with information in exchange for his life. Aside from telling you that Rat Demons "like the taste of ducks", the coward tells you that he can sense a powerful gem behind the wall to the south.
Now that you've milked the information from him, you have the option of either letting the Rat Demon go for some Open Palm points or killing him anyway for some Closed Fist points.
9 - Bones
Hidden among these bones is the Cameo Portrait plot item. You can bring this to Old Wei back in Tien's Landing and use it as a means to get more Open Palm or Closed Fist points.
10 - Rat Demons
Two Rat Demons guard a ceramic urn in this dilapitated building. Slay them, then grab the 256 silver pieces within the urn.
11 - Rockets
Using the Dragon Powder you confiscated at area #7, you can activate these rockets to destroy the wall at area #12 (for 500 experience points). Firing the rockets at the wall will also kill the three Imperial Soldiers standing near it, if you haven't wiped them out already.
12 - Weak Wall
Three Imperial Soldiers are standing next to this "weak wall." If you'd rather not fight them, just activate the rockets at area #11 first and they will be killed in the explosion. Once the wall has been destroyed, you can access the areas off to the east.
13 - Convict Ghosts
Three Convict Ghosts will try to put a stop to your progress here.
14 - Headstone
Open up this headstone to find the essence gem the cowardly Rat Demon told you about - The Soft Petal.
15 - Headstone
This trapped headstone contains a nice pile of silver.
16 - Stabber Yuxi
Stabber Yuxi was the toughest convict on the chain gang in life, but now he guards the entrance to the Quarry in death. He and four other Convict Ghosts (two at first, with two more spawning as the others are destroyed) will attack you without provocation, so prepare accordingly. This can be a pretty tough fight, so remember to use the Spirit Thief style when you need more Chi to heal up or empower your attacks.
17 - Exit
Continue into this cave to reach the Quarry.
18 - Orphanage
After a short battle with a Rat Demon, two orphans named Bin and Miao will approach you and explain that they drowned drowned in the rising of the water long ago when their master Kindly Yushan failed to save them. Both want to rest in peace, however their method for doing so differs. Bin, the Open Palm type, simply wants you to convince Kindly Yushan in the Teahouse to come bury their bones. Miao wants to exact revenge by having you kill Yushan and bring his head back for proof. Doing so will earn you some Closed Fist points, though bringing Kindly Yushan here and letting Maio kill him instead actually nets you more Closed Fist points. It's a little disheartening to know that the two orphan spirits are doomed to never find rest in death, though. If you go with the Open Palm route, you'll earn 1300 experience points and receive an Inferior Scholar Gem. If you go with the more potent of the two Closed Fist routes, you'll still receive the gem but will only net 1000 experience points.
Note that the only way to complete this quest is to either leave this area high and dry for further access by sabotaging the dam (the Closed Fist method) or by returning to the Teahouse and speaking with Kindly Yushan before you close the dam (the Open Palm method). Once the dam is closed, the Ruins will become submerged in water and you will no longer be able to speak with the two orphans.
19 - Chest
Check the southwest corner of the orphange to find a chest containing a handful of silver and a random essence gem (such as an Inferior Monk Gem or an Inferior Intuition Gem).
20 - Headstone
Smash this headstone for a large amount of silver (~1000 pieces).
21 - Rat Demon
A lone Rat Demon guards the area behind the orphanage.
22 - Bamboo Cask
Loot this cask to add some more silver to your ever-growing stash.
23 - Lotus Assassin and Imperial Soldier
As you approach the area, you'll stumble upon a Lotus Assassin and an Imperial Soldier sharing the code word to get past the golem guardians (which are further ahead at the Dam Site). That code word is "Shao Hua", though it's not 100% necessary if you happen to forget it. The Lotus Assassin will notice you and flee to raise the nearby bridge, while the Imperial Guard is left to fight. The battle should be a quick one.
24 - Lever
Activating this lever will cause the crane to the west to turn and conveniently activate the lever on the opposite side. This will lower the bridge that the Lotus Assassin just raised.
25 - Bamboo Casks
One of these casks is trapped, while the other is not. Both contain silver pieces only.
26 - Water Dragon Vision
The Water Dragon will visit you once again when you reach this area. Her dialogue continues to be cryptic, though this time she does hint that you are being misled by someone and mentions that a guardian up ahead is an ally that can be trusted.
27 - Exit
This pathway will bring you to the previously inaccessible western section of the Dam Site.