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There are two major uses for the Dry Hills. First the fact that the entrance to the [[Halls of the Dead]] is located on this level, but there is also the first [[wilderness]]-placed [[waypoint]] here. There is also a second waypoint on the second level of the Halls of the Dead.
In the Halls you will find the [[Horadric Cube]], so if you can survive in the dungeon, you should try to do that first, as the cube will give you more inventory space for future adventuring.