While crossing the Desert of Kesh, also known as the Furnace of Hell, a weary and wounded Wulf has battled a group of nine desperate men. These men desired but one thing, Wulf's water bag.

As Wulf dispatches the last of the nine men, he is greeted by Berithe of the Free Swordsmen Guild and her companions Rymstrydle the Blader and Zemba, a magician.

Delirious from thirst and blood loss, he attacks the trio, only to be subdued by the magician Zemba, whose spell puts Wulf into a well-needed deep sleep.

Wulf awakens in the city of Rama-Kesh. A city, he learns, that has no water.

One of the water merchants, Rasselas, has dabbled in sorcery and killed his competitor, Melekantis. Not content, he continued to delve deep into sorcery, causing him to become mad and unleashing strange creatures upon the city. He then proceeded to empty all the water wells.

The Swordsmen's Guild was offered a fortune in gold for the head of Rasselas, a bounty that Berithe plans to collect. Wulf agrees to join them in the attack on Rasselas.

The quartet soon invades the fortress of Rasselas where they battle their way thru the undead. As they enter the Chamber of Rasselas, they find him perched atop the water demon, Bel-Shugthra. Berithe throws her sword at Rasselas and kills him, but his blood now gives life to the monstrous water demon, Bel-Shugthra.

In order to combat the demon, Wulf must slay the magician, Zemba, whose blood will bring to life the fire demon, Sri-Amantra, who will battle the water demon.

Wulf, Berithe and Rymstrydle flee the fortress as the two titans destroy each other and all around them.

The water has been restored to Rama-Kesh, and Wulf continues on his quest to kill the sorcerer Mordek.