Diablo® III

Gem crafting device in Dahlgur Oasis?

In Act II, the gem merchant Covetous Shen have a dialogue option called "A mysterious rumor". As you click it he says the following:

"I heard a rumor that there is a strange and mysterious jewelcrafting device hidden in the aqueducts of the Dahlgur Oasis.

I have a mind to go search for it myself. Don't worry, I won't go alone. I'm sure I'll find someone to show me around."

It sounds like it's the horadric cube or at least something similar... right?

I've been looking for that device for like 2 hours now, but no cigar. The Dahlgur Oasis is probably the largest region by area throughout d3. There are many aqueducts along the edges, especially in the north, but I can't interact with them in any way. I tried attacking them and walk agains the walls and waterfalls to see if there's any hidden paths. I've explored every dungeon and done every event I can find there. Also there are water towers scattered across the region that are destructible and I figured maybe one of them drops the device. I've destroyed all I've come across but so far without success.

Anyone know anything about this? All help appreciated!
I'm starting to think blizzard is just trolling. >:(
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Remember the original dungeon when you rescued Shen? When he was stuck in a barrel, etc. At the end of that dungeon, he found a chalice which lets him upgrade gems. That's what he's talking about.
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