You begin the level underwater. Swim forward until you're able to surface.
Turn around to face the gap in the rocks where you entered the level. (You can see sky and a small island with a palm tree beyond.) Then swim through the smaller gap between the rock outcroppings on the left.
On the bottom of the lagoon you'll find the SMUGGLER'S KEY. Grab it.
Turn around and swim back toward where you first surfaced. Then continue forward to the rock wall.
Climb out of the pool onto the small, flat ledge at water level.
Pull up onto the block above to find a small medi pack.
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