Anvil

From Toadwater Guide

The anvil is used to make either Sharpening Stones or Axes (see Metalworking). There are two anvils on South Winter Island. The first is located about halfway through the Mines (see Mining), and the second is located in Toadee McPerkins' House.

The anvil has first to be set using either the Stone Blacksmith Pattern, Axe Blacksmith Pattern or Scythe Blade Pattern. These can be purchased using the Buy feature. Warning, once you set a pattern on the Anvil it will stay set on that until you replace it with another pattern. They are uber expensive so choose carefully, and work in large batches. The Pattern you set is not public. That is, another player can set their own pattern on the same anvil without seeing or changing yours.

Select a Metal bar in your Hoard and then click on the anvil.