There is an item in a cave in the Armun Ashlands (lost the name, sorry), called the Water Spear, that has the effect of Water Breathing for 100 points - Casts when Strikes. This feels strange as you would have to hit a creature in order to utilize the out of combat utility of this item. 

Also, that same cave was filled with skeleton enemies, various hanging skeletons, and scattered bones, including a necromancy-style book or two, but no necromancer or explination was found.