When the surface dwellers (humans), including the Hero of Falconreach, arrived in The Locker Aquella was initially very upset. She was particularly distraught by all of the shipwrecks and the litter that the 'surface-dwellers' had brought with them to the bottom of the ocean.
This was simultaneous with Captain Davey's renewed attempts to obtain the Water Orb and Kathool 'Achoo's attempt at rising from the depths. Kathool 'Achoo did this by disturbing everyone else's dreams by turning them into corrupted nightmares. At the same time it was revealed that the twisted red monsters, which the Hero of Falconreach always fought, was in fact the Water-Elves transformed by Kathool 'Achoo.
Aquella soon found herself caught in between the two manipulations of the ancient aquatic-being and Captain Davey's strong attempts to force her into guiding him to the Water Orb. Kathool 'Achoo then tried to possess the Hero of Falconreach through their own nightmares. The possessed Hero of Falconreach somehow managed to rescue Aquella from Captain Davey...
Aquella in turn prevented Kathool 'Achoo from rising and disturbing other dreams by her magic being cast. Unfortunately, during the course of all of these battles, the Water Orb had completely vanished from sight. Fortunately, with the fall of Kathool 'Achoo, many of the Water Elves were restored to their usual forms.
Although she aided the Champion of Battleon on many occasions, Aquella has not always held the best interests of Lore at heart. Aquella's brother Thefarus sought to gain power from the Elemental Lord of Water. He received the power from the Water Orb, but was transformed into a massive Sea Fiend.
When they reunited, Aquella asked him to attack Lolosia, the former territory of the Water Elves in order to scare the people who lived there. The attack did not go as planned, the Sea Fiend destroyed Lolosia and killed many of the people residing there and spawned an army of Sea Squirts. Aquella vanished during the attack, leaving Captain Florgar, Captain Rhubarb, Vince the Drakel, and Mercuria the Fire Mage to battle the Sea Fiend's armies. Afterwards, Aquella realized her mistake in encouraging the attack and joined the Champion of Battleon in battling Thefarus the Sea Fiend. Aquella and the Champion took the Water Orb, and Thefarus attacked again -- resulting in his second defeat.