The prerequisite is to arrive in Gilded Vale and speak with Urgeat at #2 to complete the Gilded Vale quest.
Nearby at #3 is an enormous tree from which hang several dead bodies. The tree itself is central to the quest.
To complete the quest, you first need to rest. The nearby Black Hound Inn suffices. A horrifying dream will trouble your main character once you rest.
Completing the quest requires you to go back to the tree. You can now click on one the dead bodies hanging from the tree, that of Caldara de Berrazi. What ensues will be a prolonged conversation between your main character and Caldara's spirit. You will be aware of yourself as a Watcher, someone who is gifted and cursed with the ability to sense souls and their ties to the world.
Another result is that your protagonist will acquire the Crucible of the Soul power, which allows your protagonist to simultaneously drain Endurance from enemies in a cluster and restore Endurance to him or herself.
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"*I AM NOT FOUND WANTING. WHERE MERCY LIVES, I SHALL KILL IT. WHERE COMPASSION POISONS THE HEART, I SHALL BLEED IT FROM ITS VICTIM. WHERE LIARS AND BETRAYERS OF TRUTH FOSTER LIES, I SHALL ANSWER THEIR LIES WITH JUSTICE'S BLADE.*" -Vhailor, Planescape: Torment