Crystalis/Swan

Swan
Enter the unmarked building left of the Inn to meet Stom. He will ask you to find Kensu, before disappearing.

Kensu can be first found in the pub, and is found at the bottom left disguised as a soldier. He's the only one not moving, and if you talk to him, he brags about Kensu. Use Paralysis on him and talk to him. He'll curse and disappear.

Head to the dance hall to the right, and use Paralysis on the dancer at the bottom left (again, this person doesn't move). This revels the dancer as Kensu. After talking with him, he will give you Change in exchange for the Love Pendant you found south-west of Joel. He'll point you in the direction of Mt. Hydra.

Before doing so, though, a detour. With the Change spell, there is another area you can reach now: the all-woman town of Amazones.