There are two ways to trigger this quest. The first involves the Fishery, which is at #16 on the Stalwart Village map.
You can speak to Grynde at #4 on the Fishery map. The conversation itself won't amount to anything meaningful. Simply the fact of the conversation is enough to trigger the quest.
You can reach Galvino himself at #46 of the Main Floor map. Be warned that you'll have to battle a LOT of Constructs with dangerous powers such as the ability to cast Malignant Cloud and the ability to self-detonate and cause massive damage on anyone nearby. At the very minimum you will need to open the door leading to Galvino at #45 with the Workshop Key, which is at #13.
He wants you to expose Grynde as a Ripple Sponge addict before the mayor, Renengild. He suggests that the Ripple Sponge Stash can be found in the Fishery at night.
When you go into the Fishery at night, what you find instead is Arda's Bracelet in the barrel at #7. Taking the item prompts a Watcher vision that reveals that Grynde's sister, Arda, discovered Grynde's Spong habit and his thieving to support the habit. He then accidentally killed her and hid her body in the nearby lake.
Grynde, along with severay Fishery Guards, will come in once the vision has finished. Passionate, Rational and Stoic replies are possible in the course of confronting him with his sister's death. You have four ways of handling it:
You can demand a bribe in exchange for letting him walk away without any consequence. You get 500cp, but also a minor hit of negative reputation with Stalwart Village. If you return to Galvino, he will be upset with you for not exposing Grynde and will not give you any reward.
You can freely give him the bracelet and let him walk away without demanding anything. You'll get a minor gain of positive reputation with Stalwart Village, and Grynde will give you 500cp of his own accord. Likewise, Galvino will give no reward for this option either.
You can attack Grynde and his Guards. If you saved Lurgolder from the fire, then he will take your side in the battle. They don't drop anything besides some coins. You'll also get a minor hit of negative reputation with Stalwart Village. However, Galvino will be estatic at Grynde's downfall, and will reward you with two Potions of Major Endurance, two Sapphires and two Topazes.
You can make either a Resolve check of 16 or a Perception check of 15 to convince Grynde to willingly reveal his secret to Stalwart Village, after which he leaves in shame. There will not be any reputation loss or increase with Stalwart Village, but the reward from Galvino will be the same.
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