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The Dune Observatory is a vault located in the Dry Bay area. Its entrance is guarded by the Tower's Fort village.

Hue visits it during one of the following quests:

He finds the Scouting Lens inside it.

Built by a species long-forgotten, its purpose was to provide a place to look at and study the stars and celestial bodies. Conveniently, it also became a fitting location for overseeing the island.