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After spamming the attack button and defeating The Sniffer, you and your friends will end up back at the beach. The only way you can go further is with your boat, but the problem is that the dam is closed. In order to open it, make your way to the right, where you can see stairs blocked by a fence. Thankfully, you can use your newly acquired tools to open the door.
Make your way up one set of stairs and then go up the long ladder to get up to the dam. When you get to the top, you will see that the dam actually has two sections that you need to open. For the first one, there is a mechanism right next to the ladder, but the wheel is missing. In order to get your wheel, go to the left and into the observation area, where in a small room your wheel is located.
Grab it and make your way back to the mechanism. As you are opening the first door, you will notice that the second one stays shut; however, on the other side, there is a lever. To open the second door, you need to carefully arrange the first one so that your character can jump over the gaps and get to the lever.
After getting to the other side, hit the lever, and the second door of the dam will open, afterwards you need to jump back to the other side, use the mechanism to open the previous door for the dam, allowing you to pass through with your boat and progress further.
