Location: Wutong Village
Petitioner: Dachui the Blacksmith
Prerequisite: Complete Cave Fight
Reward: Martial Arts Notes, Spiced Beef, Cloud-Nine Nectar, 1,000 coins

One of several side quests that only unlocks after you've 'properly' begun your journey, you can't undertake The Villagers' Dilemma until you've gone through the Cave in the Mountain. Once that's done you can trigger this side quest by speaking to Dachui, the blacksmith who lives on the west side of Wutong Village.

Dachui complains of insects making off with grain. He's not sure what he can do to stop the problem. You're given two options partway through the conversation.


Ask the village head for help

Your first option is to speak to Mr. Li the Village Head. He's stationed on the upper half of Wutong Village, to the west of the Cave in the Mountain. Mr. Li will conclude that monkeys are to blame for the missing grain, and decide that poison is your best recourse. Fair enough. 

Travel to the west side of Wutong Village to find Sun the Physician, and speak to him. He'll give you some Monkey Poison. Head northwest of Sun's house to find the little clearing where you fought some monkeys earlier in the game. You now have two options, though ultimately you get the same results. Speak to Sun again to receive a reward: Martial Arts Notes, Spiced Beef, Cloud-Nine Nectar, and 1,000 coins.


Ask the woodsman for help

Your other option is to speak to Zhang the Woodsman, on the east side of Wutong Village. He'll also conclude that monkeys are to blame for the missing grain, and will refer you to Sun the Physician. Past this point the quest goes the same along this path as above.