The Water Otter Fountain Permit is an item that can be purchased in FFXIV. It is sold by the Horrendous Hoarder NPC inside the Cozy Cabin on a player’s Island Sanctuary. You can find it by selecting the dialogue option “Exchange items for permits,” which seems to unlock after reaching Sanctuary Level 9 and building every landmark. Including the lighthouse landmark.
(While unconfirmed, it may also be necessary to build and/or upgrade every Granary and Workshop facility as well as complete the short quest “The Land, Wind, and Sea.” This unlocks after building in every available plot of land on the sanctuary, including landmarks.)
To purchase the permit, you must exchange two of each Water Otter Fountain crafting material. These are Level 90 crafting recipes spread out between different Disciples of the Hand. As such, they are not found in the Island Sanctuary crafting log and must be created using traditional crafting using conventional items.
These materials include: