It is yellow
You will need to be on the boat to see this one
You will only be able to trace this one from start to finish if you are moving in the correct direction
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Board the boat from the dock by the swamp area. Set a course for the dock by the town. You might want to slow the boat down for this one. Face towards the mountain and, as soon as you can, select the big yellow circle. Trace the line down the side of the mountain, but don't go too far or you will miss the next portion of the puzzle. (This part might take more than one attempt.)
Keep holding on; this one is rather long. As the line continues, it will transition, wrap down and around and travel back up the mountain and around the greenhouse. If at first you don't succeed, just turn the boat around and try again.
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Complete spoiler:
Take a ride around the mountain and it shouldn't be very hard to spot
Roll over each black area below for hints.
Each new hint gives away more than the previous one.
Intro
This one is pretty fun, though it may take a couple attempts before succeeding to light it up.
It is not indoors or underground
Location:
It is located somewhere around the mountain area. However...
You won't be able to find it anywhere on the island
To clarify, the puzzle itself is on the island. You just won't be able to see it from anywhere on the island.
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Hints:
Map
River Obelisk
East #4
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THE WITNESS - ENVIRONMENTAL PUZZLE HINT GUIDE