Peter at Mermaid Lagoon
Mermaid Lagoon is located in Never Land, East of Pixie Hollow. Mermaid Lagoon is surrounded on three sides by cliffs with many ferns and plants on them, but one side goes out onto the sea. On this side there is also a stone archway, on the other side of which you are faced by the open sea and "out" of the lagoon. There is a gathering of rocks in the middle of Mermaid Lagoon, on which the mermaids inhabiting the Lagoon like to sunbathe and spend their time out of the water.
Mermaid from the Lagoon
Though mermaids are the only known beings living in Mermaid Lagoon other than fish and other sea-creatures, they get many visitors. One of their favorites is Peter Pan, who seems to enjoy the mermaids' attention and tells them stories of his heroic battles with Captain Hook. On one occasion Peter brought Wendy Darling to Mermaid Lagoon, but the mermaids did not welcome her and instead tried to drown her.
A few fairies from Pixie Hollow have also come to Mermaid Lagoon in various Disney Fairies books. Rani has visited a few times, once in the book Rani in the Mermaid Lagoon and and again in Gail Carson Levine's books, Fairy Dust and the Quest for the Egg and Fairy Haven and the Quest for the Wand. During the second time, Vidia and Prilla were also with her