A Worthy Weapon

1. Go to (70, 76) in Icecrown. On the the ground you will find "Winter Hyancinth". You will need to collect a total of 4 of these.

2. Go to (93,26) in Dragonblight and use the stack of flowers you just picked. You have to use the stack of flowers within the circle outlined with the purple floating boys.

3. Pick up and the item that spawns on the lilies.

4. Swim out (or cast water walking) and fly back to Arcanist Taelis at the tournament camp (76, 19 in Icecrown).

5. Receive your 2 badges.

Edit:
It appears the item looted is non consumable. Eg more than one person can loot it with or without the possession of the Hyacinth. Very useful if you are farming Dragon Fin.

Listen, strange women lying in ponds, distributing sword is no basis for a system of promotion. Being a Valiant derives from a mandate from the masses, not from some farcical aquatic ceremony. You can't expect to become a Valiant just 'cause some watery tart threw a sword at you. I mean, if I went round saying I was a Valiant just 'cause some moisten bint had lobbed a scimitar at me, they'd put me away!

7.1.5 - While this quest is annoying with all the flying around, hopefully if you read this it can save you some time. In order to get the sword from the lady in the lake you will need to get Winter Hyacinth first. Do not just grab one and head over to the lake as you need 4 of them for the offering. These can be found directly south of the Argent Tournament Grounds in the Ironwall Damn (71,75) / Decrepit Flow. (17,14). these are all over the ground on the border of the two zones. (Icecrown / Crystalsong Forest). Once you have the 4 Hyacinth, head to 93,25 Dragonblight and you will find a circle in the water. Right click the flowers and she appears and shortly after puts the sword on a leaf and lets you take it.