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No quest in Tears of the Kingdom exists in a vacuum. Something you do in Lurelin Village has the potential to affect someone all the way in Rito Village and vice versa. This is what makes Hyrule a living, breathing sandbox for players to play in.
The Lurelin Resort Project can only be started once you've completed a couple side adventures first: Ruffian-Infested Village and Lurelin Village Restoration Project. The Lurelin Village is overrun by pirate monsters, and nothing can be done until you clear them out and bring back the original residents to their homes.
Where To Start 'Lurelin Resort Project'
After completing Lurelin Village Restoration Project, talk to Bolson and Rozel near the village beachfront (2859. -3517, 0000). Both of them are concerned about the village and how to attract more people to visit. You'll see three options in the dialogue as suggestions to create a resort to improve the tourism of Lurelin Village.
A floating hotel, an underwater touring service, or a water rally. It doesn't matter which one you choose; the only real option is the Water Rally.
Exhaust the dialogue, and they will ask you to go to Tarrey Town in South Akkala to see how to bring back pro racers to Lurelin Village in order to get the Water Rally Project started.
Turn on tracking for the quest, and you should see a marker pointing you toward the exact location you need to go to.
Visit Tarrey Town
Teleport to the Ulri Mountain Skyview Tower in South Akkala and head southeast to find the Hudson Construction Site. You're looking for a large housing structure with a Hylian woman and two Gerudo women arguing with each other.
Interact with them, and you'll overhear a conversation between Fernison, a Tarrey Town resident, and Shabonne and Tali, two pro racers that have come to Tarrey Town from Gerudo Town.
You'll find out that the racers are mad because Fernison brought them to drive a completely unique vehicle made out of Zonai parts that nobody can control.
Exhaust the dialogue, and you will receive the notification that a new quest, "Master the Vehicle Prototype," has started.
You'll need to complete this side quest in order to progress the Lurelin Resort Project further.
How To Complete 'Master The Vehicle Prototype'
Talk to Fernison, and she will reiterate the issue. If you have a Steering Stick Zonai device in your inventory, you can offer it to Fernison, and she will ask that you attach it to the large four-wheeled vehicle near the house.
Take out the Steering Stick and use Ultrahand to stick it on the Stone Slab. Fernison and the racers will be curious to see the Zonai vehicle in action, so they'll set up a track for you. The track consists of beams of light that disappear as you pass through them.
Drive the vehicle through the beams of light and reach the finish line within the time limit. There are two rules: Don't let go of the Steering Stick, and don't stray from the course.
Complete this race, and you'll receive 100 Silver Rupees and a Sleepover Ticket as a reward. "Master The Vehicle Prototype" side quest will be marked complete. Now, it's time for the next step.
The Tarrey Town Race Is On!
Head over to the South Akkala Stable that's just over the horizon and rest for a day. You'll need to progress the in-game timer by one day in order to start the next phase.
Once you've rested and are ready, head back to the same location and talk to Fernison again.
She'll tell you that they've revamped the construction site entirely, and it's now ready to put to use as a proper racetrack. But this time, things are slightly different. For one, you will need to use the Steering Stick provided by Fernison and not your own. And second, this time, you'll need to beat Tali's time of 2 minutes to get a win.
To make the vehicle, you can use some Zonai parts lying around near the lake just behind the house.
One thing to note is that there is no restriction on the type of vehicle that you can use for this race. Case in point, we created a hoverbike to easily complete this challenge since we had it already saved in our Autobuild.
Of course, you can make any type of vehicle you want. Just don't forget to use the Steering Stick on the counter provided by Fernison. Completing the race will see you rewarded with 3 Zonai charges.
Running out of battery charge mid-race will see you disqualified. You can use Zonai charges from your backpack to extend battery time in order to finish the race.
Invite The Racers Back To Lurelin Village
Talk to Tali after you've completed the Tarrey Town race, and you will get the option to offer her a spot as a pro-racer in the Lurelin Resort Project Water Rally. Tali and Shabonne will accept your offer and head toward Lurelin Village.
How To Complete 'Lurelin Resort Project'
Bolson, Rozel, and the racers are standing under a canopy at the edge of Korne Beach, a little ways ahead of Lurelin Village. Turn on the quest marker to find them easily.
Interact with them, and you'll find that the project is already almost complete! Talking to you gives Bolson the flash of inspiration he needs to finish everything. The screen will black out for a few seconds, and Bolson will complete the building for the resort in no time.
By popular vote, the resort will be named Lurelin Village Water Rally, and the water rally mini-game will be unlocked. With this, the Lurelin Resort Project is marked complete.