"The Ghost of Madrona Lake"
The town of Janeira knows their lake to be magical. If one where to stop in to ask the mayor about said magic, he would gladly show sketches of a woman’s arms appearing out of the lake holding many different items. The stories tell of a blacksmith’s daughter who drowned in the lake hundreds of years ago.
"Only her love of smithing keeps her in the lake to forever help those who ask it." The major suggests anyone try it for themselves, but warns everyone to not abuse her kindness. "Only give the lake a single item once, any more and she will not repair it but damage it instead".
Leaving the major’s manor, you find the most popular tavern to interview the locals. After exchanging a few pleasantries, you ask the barkeep about the lake. She informs you that no one has never seen more than her deathly white forearms and hands, which are surprisingly delicate and with no signs of pruning. A man nearby hears your questions and joins in the conversation. He shares with you that he is a fisherman who lives close by the lake, "Normally a person drops some broken metal into the lake and soon her hands reach out and gives it back all shiny and new." That never happens when he fishes though. Instead, his hooks were cleaned the first time they entered the water and there has been no other sign of the lady’s assistance ever since. The wood of his fishing rod and boat remains the same day after day. He offers you his boat so that you can see the lady. You accept his offer and make plans to row out to the deepest part of lake in the morning. Morning comes and you pick over your bag for which item you will give to the woman who lives in the lake. After settling on a sword that you had shattered you row the small boat to the middle of lake. You pull out the pieces of your sword and place them gently in the water. Watching the metal sink into the murky depths, you wonder if this lake lady is really a ghost? How could she fix anything underwater? Suddenly you hear a splash jolting your attention back to the water, and there she is presenting your sword in slender white hands. When you take it from her the arms immediately sink back down into the watery depths. Back on the shore you test your sword and wonder at the quality. "Sharper than the day it was made," you muse at what will become the greatest blade you'd ever own.
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In truth this creature is a Naiad with a metalworking hobby. Using magic she will restore and improve the items freely, but only once. Attempts to take advantage of her kindness may result in injury.
I wonder if the kids in the town stage ghost hunter investigations, trying to touch her or spending nights out on lake to see if she makes an appearance outside of returning metalworks.