You will have to visit 3 locations. To get the actual quest update, you have to stay at each of the locations for around 1-2 minutes (I had to move back up the steps to get update).
Fountain: Stand inside the fountain for 1-2 minutes then move away; you do not get the update while standing in the fountain but after you have moved away from it. ( 138, 143, -23 ) /waypoint 138, 143, -23
View of the bay: Go to the Pirate's Perch in The Sinking Sands. Climb to the top of the mountain, stand in the shade under the big tree for 1-2 minutes ( -2029, -160, 73 ) /waypoint -2029, -160, 73. Then move to stand at the cliff edge to receive the update ( -2036, -158, 92 ) /waypoint -2036, -158, 92.