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Location: Skaal Village, The Greathall, Tharsten Heart-Fang
1. Look at the map Korst gave you. The Water Stone is located near the western shore of the island, a little north of center. You'll have to climb a small hill to see it embedded in the snow.
2. Activate the symbol.
3. The clue tells you to travel west to a small island, approach "the Swimmer," and follow it to an underwater cave. When there, retrieve the "Waters of Life" and return to the stone.
4. Head due west, and a fraction north. You'll soon see a small island with what looks like a dark "horker" creature on it... similar to a sea lion. It will be named "the Swimmer." Prepare your best underwater breathing apparatus (i.e., spell or enchanted charm) and begin swimming behind it.
5. Follow the swimming horker until it stops, at which point your journal updates, and you'll be directly over an underwater cave. Swim down and enter "Stahlman's Gorge."
6. Follow the small cave's easy passage underwater until you arise from the water, battle a skeleton, and then take the potion on the ground called the "Waters of Life."
7. Return to the Water Stone and activate it.
8. If this is the final stone, return to Heart-Fang in the Greathall.