If you have fixed the lever and are riding the right trolley car, without having flipped any switches yet, it will take you down to a place where you will follow the path to what looks like another trolley station...trickery in action here if you do what I did and do not explore it as you will find out that it is an abandoned rail and the lake you are looking for is at the end of it.
When you get to the lake & cross it, if the monsters come up front to attack you like they did me, go ahead & continue to explore that area as well as the place the walkthrough directs you...I found more Dragon Ore back there and some gems and the King made me two sets of Dragon Armor before I left.
: )
Moni
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