Board you Enterprise and sail a little west you will see a small town at the south.

Chests (2):

• Serpent Sword
• Kenpo Gi

Hidden Items (3):

• Bacchus's Cider
• Great Bow
• Lamia Scale

Try to talk to anyone in town will scare them, and they will run away. 

First go to (1), inside, enter (2) it is a hidden entrance to another room. In there, talk to the lady to trigger a show.

Next, go to Elder's house and talk to him; don't forget to collect two chests in there.