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Introduction
"I have come to a conclusion after examining Eran's report. The mutation of monsters at the fairy's woods seems to be due to the contamination of the holy water. All the animals and plants living in the fairy's woods have been affected. The mutation of monsters is understandable if holy water has been contaminated. This information is very serious. Quickly go and let Eran know about this."
Walkthrough
After accepting the quest, talk to a teleporter in Laksy and head to Laksy Field. Speak with Teleporter Audrey and select the Lizardman Habitat destination. Head northeast through the Lizardman Habitat and exit through the northern road. Follow the road northeast until it enters the Fairy's Woods. Talk to Woods Keeper Eran who is located on the east side of the woods along the southern wall.
Conclusion
"Oh, no! The holy water has been contaminated? How on earth could that happen..."