When you enter the town, immediately walk up the left side and enter the building. It will initiate a cutscene with Master Hama, where she explains the nature of Adepts. She also reveals that it was Saturos' group that blocked Silk Road and the Alpine Crossing. After a time, Feizhi comes in. She followed you through the Altin Mines to reach the temple. Hama and Ivan clasp hands, and she teaches him the technique Reveal. Reveal is an incredibly useful ability; it lets you see hidden passages, detect items that are in boxes, barrels, and crates, and it is necessary to proceed. Hama hints that she knows Ivan, but he can't recall. After the cutscene, you are faced with the option of helping Feizhi and Hama rescue Hsu, or going on through the Lamakan desert. For details on the Hsu sidequest, read the Alpine Crossing page.
Before leaving, either way, head to the right side of town, jumping across the river. Use Reveal on the rock to see a hidden chest containing Water of Life. Now, continue on.