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This region isn't much different from the Jungle that you find all around.
The waters are very shallow and a foundation built in will stand out. You can't built around the cave's entrance.
A waterfall in the center of the lake lets you fall down to the The Emerald Forest, but without the possibility to climb back to the surface. You can the dive in two successive pools until the cave. Note that some wild creatures often fall down the first pool. Give a look before jumping.
Beware of the fact that flying too close above the waterfall will dismount you from you flyer and make you fall down the hole.
The most interesting part of this region is above the upper waterfall at which you find a cave in (30.9/94.1), that is filled with metal and obsidian nodes and some rare flowers.
From Local Creatures