That's Chaed. It seems inaccessible...

There's an underwater passage

Now you can access the town

You'll learn about the dire situation and that the town's elder has gone to try to save the people.

This can be a pain! Go here for a solution

Do this to be able to access the world's most difficult trick! Go here for a solution to the WMDT.

Good timing.

You'll now fight the Fire Dragon. Be sure to concentrate on cold attacks such as Ice Valk for damage in the 600's. The dragon has very strong physical attacks and party affecting fire based spells. Don't let your characters' HP get too low or you might be unlucky on the next round.

Before going back to Chaed, check along the right side for a passage. It'll lead to a secret passage with a treasure chest and a warp to the beginning of the mountain.

Once you get to him, he'll talk about the Dual Blade

And give you the location of Preamarl. Its right below the Myconido Capsule Monster Shrine.

After talking to the old man, he'll give you the key to entering Preamarl.