The 7th Saga/The Water Rune

Eygus
Items to find:
 * Bottle of ice

There are no real shops in this peaceful town. Instead, the inhabitants will tell you about the end of Melenam and, more important, about how to use the Wind Rune: it allows you to teleport to the previous visited locations. Therefore, use it to reach any item shop you may need.

Search between the two houses in the north-western corner of the town to find a Bottle of Ice.

Talk to the Sage in the north-east corner of the city. He will open the passage to get back to the continent.

Beware! Once you talk to the sage, one of the other warriors will be selected for a story event in chapter 4 and you will lose the ability to recruit them as a companion. To know who was or wasn't selected, you can simply check the locations in towns where the warriors can be found. The warrior you cannot find is the one you will fight later.

Cave of Eygus
This cave has a long narrow walkway, so attacks can be frequent. There's also a new enemy, Brains. Hopefully you still have enough supplies. When you exit, walk south to get to the Pell.

Pell
Items to find:
 * Bottle of agility

The coastal city of Pell doesn't contain any runes, but is a mid point that can be used for resting. Explore the buildings and learn about the characters within the city.

Outside the item shop there is a short pier leading to nothing; search its end to find a Bottle of Agility.

Leave town and fight several Brains. Not only they are a great source of experience and gold, but also they occasionally drop a Life Recovery: this is the only spot where you can get this item, that is never sold in shops. Actually, some Recoveries can be found in chests, and one enemy type in the very last chapter drops them.

Guntz
Items to find:
 * Power seed
 * Water Rune

The country of Guntz is located to the south of Pell, but there are mountains between the two cities. You have to take a small detour to the west to get there.

The second rune is guarded by the sage at the north of the town. When you try to speak with him, he will refuse to give you the rune. Continue speaking with him, and he will tell you to provide Guntz with water in exchange for the rune.

Search the book in the sage's house to find a Power Seed.

Return to Pell; you can use the Wind Rune between the two towns, but it might be wiser to walk and gain experience from the fights. Enter the Pell tavern and speak with the digger Quose: he'll accept to work for you, so you can escort him to Guntz.

When you speak with the sage, the digger will fill the moats with the underground water. You will then receive the water rune, which allows you to heal within battle.

Rejoice: there is no boss here! The Guntz people tell you that the next rune is to the east, in the country of Patrof.