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The token is the Amulet of the Mothers and it can't be sold. Maybe you stashed it somewhere?
This is the Water Priestess' hint: "The Water Elementals' world is under the sea of course, to the far north, off Harpies' Rocks, but they are protected by fierce Water Tigers. I think one of the Water Tigers guards the Crystal of Enlightened Kingship."
But she won't set the hole that is the entrance to the Water Elementals' World visible unless you have that amulet.
You may need to go to an earlier save file.