At the Governor's Mansion (far right), you use it to read the faded writing on an old parchment.
Use your raft to sail to Golden Harbor.
When you have the blue candle, go to the governor's house (far right).
Take it to the Governor's house to the right of the farm. The governor has a parchment that has partly faded. Use the blue candle to reveal the hidden part of the text.
Take the blue candle and go right, to the governor's house. You can use the candle to read a faded document.
Take the chicken to the farm at the right of the bridge. Use it to eat the bugs and the farmer will give you a special blue candle.
At the Governor's house, you can use it to read the missing part of the parchment.
Go to the very right, to the governor's house, and use your candle.
the blue candle use it in the mansion by the Governor use the mirror to signal the raft if you mean 4 the gold bank island thing,I do not know...IM 10 OK!!
Take it to the corn farm to the right of the bridge, where it will eat some pesky bugs. The farmer will give you the blue candle, which you can later use at the Governor's house.
Take it to the right, over the bridge, to the farm infested with bugs. Use the chicken to eat them, and the farmer will give you the Blue Candle (you can use it to read the missing part of the parchment in the Governor's house).
Take the chcken across the bridge to the right, to where the bugs are eating the farmer's crops. Use the chicken to eat some bugs and the farmer gives you the Blue Candle.
After you use the blue candle to read the docment at the governor's house, a raft will appear in the telescope on the tower. You can signal to it using the broken mirror found in the general store.