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Haiju Lagoon is the body of water occupying much of the northern side of the explorable area of the same name. Apparently, something magical happens to its waters as they cascade down from the Wahju Falls: using a skill while standing within the Lagoon restores 25 Health each time.
The lagoon is home to Grasping Roots & Dragon Lillies, occasionally led by Baozo Evilbranch. Adventurers should approach Teipoa Island with caution: parents in Linkei Township still scare their children with stories of the fearsome Bog Beast of Bokku that is said to make its home there.