There are several Mimiga you can speak with throughout the village to catch-up on what's been happening to the island. One of them, Santa, can be found at the bottom of the village, complaining about something important.
If you enter the Mimiga Tower in the middle of the village, there is a chest on the ground floor containing a ●MAGIC JOURNAL●, an item that will remind you of your current objective in the story if you get lost, or forget when you last left off.
Another Mimiga, Kanpachi, can be found in the large building on the right. He will give you a hint to explore Grasstown, but in order to reach it you will have to switch on a valve in the village Pipeworks.
You can reach the Pipeworks through the door next to Santa.
Head to the right. Near the middle of the map is a small demonstration of what to expect in this area - irrigation pipes. The pipe on the ceiling near the end of the map can be used to quickly reach the entrance to the area.
Make your way up through the first pipe. As you climb the map, you will be presented with a series of pipes in groups of two - one will bring you to the next floor, while the other will drop you back down.
This room will be a test of your jumping skills, in two halves. Falling into the water below will transport you back to the start of that half of the room.
The door in the middle of the room will lead to a Save Point, while the door on the far left will continue to the valve you're looking for.
Head to the right and examine the console to switch on the valve. Suddenly...!
BOSS: Sue's Nightmare
Your primary target is a very large, angry Mimiga. It will walk towards you and try to punch you. Step back or jump over it to avoid taking damage.
Two other tall Mimiga-like creatures will try to attack from above, as well. You will only take damage while they spin towards you, but you can shoot them while they're spinning to stop the attack.
Once the large Mimiga's health gets low, it will instead back away from you and open its mouth to shoot several balls of energy in a random pattern. Get behind the Mimiga when it begins charging the attack to completely avoid damage - but beware of its sucker-punch!
The strategy for this fight:
After the boss is defeated, a human-turned-Mimiga named Sue will appear. Follow her out of the room, and you can now use a shortcut to return to the Mimiga Village.