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Jade Empire Hints
Find the Water Dragon
1 of 4: Before you go anywhere, be sure to check Zin Bu's inventory. He has an expensive Cyclone Gem that anyone can use to get the Damage Shield effect. (However, if you've been thorough, you'll already have a Damage Shield gem that you can use.)
2 of 4: Looking around, you can see the pillar of light to the south, so head that way, fighting lost spirits and ghost lords as they appear.
3 of 4: TIP: Before you go south, head north and look for some bones near several wrecked cannons. Search them to find the demon sword, which is the game's ultimate longsword.
4 of 4: When you reach the pillar, the Water Dragon's spirit will speak to you before sending you to Dirge.