It's near the ghoul searching for an item from his "brother", and is magically locked or warded and will require a key.

I've finished the sewers so did I miss it?

[SPOILER]
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V
Well, you need to go to where the two Yuan-Ti's are casting their spells. (First part of Baram's Quarter) There is a side room full of spiders there. Kill the spiders, and click on one of the cucoons. You will free a nanny, who will give you a teddy bear. Next, go to the Cutlass inn, and talk to a lady whose name starts with an L (can't remember the exact name). Accept her quest and say her children are dead, and give her the teddy bear as proof. She will give you the key to that locked sewer door. ;) Inside that locked room are a whole bunch of chests full of goodies. [img]smile.gif[/img]

Spoiler addon

Or tell her her children are alive, but sent away to an orphanage outside the city never to return. Sorta nice to do. Same rewards.