Your main goal in Disney Dreamlight Valley is to convince every character in the game to return to the Village. You will need to track down each of them in their separate realms, complete their quests, and then, finally, build them a house in the Valley.
The same is the case with Ursula except that when it comes to building her house, the game does not clarify just how and where. Building Ursula’s house is a tad different from the rest.
The following guide will tell you more.
How to build Ursula’s House in the Valley
You will be asked by Ursula to build a house for her as part of the Lair Sweet Lair quest. This quest will be available for you to start as part of Ursula’s questline after you free her. Once you free her, Ursula will go back to the Valley and there, she will ask you to build a house for her in the pond.
To build the house for her, make your way to the shore and find a good place for the house. Once you have selected a space in the water, place the blueprint of the house using the menu. After that, go to Scrooge McDuck and give him 10,000 star coins to get the house for Ursula.
Remember that you need to place the house on the water. That is the main, hidden requirement to building Ursula’s house.
Once the house is done, Ursula will assign you a few more objectives in order to complete the Lair Sweet Lair quest. As a reward, you will get a rare fish from Ursula.