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It is named for the small desert oasis located on a island-like plateau that rises above the sands providing place for desert travelers to rest. The local Gerudo or some other desert travelers left a Cooking Pot at the oasis which Link can use to cook food or pass the time though he must light its campfire. Near the Cooking Pot are two Pots and two wooden crates that can be broken to obtain their contents presumably left behind by whoever left the Cooking. Palm Fruit grow on trees surrounding to oasis and Spicy Peppers grow here as well which Link can use to create Spicy dishes to endure the desert's cold temperatures at night. Like most areas of the southern desert it is hot during the day unless in the shade or taking a cool relaxing dip in the oasis. Wearing heat resistant armor is advisable during the daytime and cold resistant armor at night. A hidden Korok can be found living here and is the oasis' only inhabitant and may be responsible for the Cooking Pot, pots, and crates found at the oasis as the Korok in Korok Forest put a cooking pot, shops, and an inn inside the Great Deku Tree's stomach for Link's use as they are aware of his heroic status and thus the Korok at the oasis with help from its friends may have done something similar for desert travelers or even just for Link himself. The oasis plateau is safe though the desert sands surrounding it is the territory of one of the four Molduga living in Gerudo Desert. The Molduga can be attacked from the oasis with Bomb Arrows, Remote Bombs, and thrown weapons though Link may jump down to attack it at close range when stunned by Bombs or Bomb Arrows before retreating to the oasis. If slain the Molduga is revived after every Blood Moon.
In addition to Molduga, Lizalfos hang around the oasis plateau to attack any travelers that seek refuge there and can make fighting Molduga on the ground more difficult though as Molduga attack indiscriminating they can damage and knock over other monsters due to their sheer size thus Link can trick Molduga into attacking them by shooting an Arrow near their feet the sound of which will lure the Molduga into breaching where their standing damaging and potentially killing the Lizalfos if their health is low. They can also be damaged by its tail whip-based Spin Attack.
Sand Sparrow can be found at the oasis and can be killed to obtain Chickaloo Tree Nuts though they are flighty and will flee if they notice Link. Down in the desert surrounding the oasis plateau Wasteland Coyote can be found though they tend to appear after the local Molduga is slain presumably to scavenge though they may also be taking over its territory as presumably Molduga would normally prey on them due to is indiscriminate feeding habits though upon sensing it is dead they move in and takeover at least until the next Blood Moon. Coyote will hunt desert travelers as they often turn their sights towards people though they tend to flee if one of their own is killed. Coyote drop high quality meat including Raw Prime Meat and more rarely Raw Gourmet Meat. Despite being primarily waterfowl Herons can also be found in the desert sands below the oasis plateau and yield Raw Bird Drumstick though like sparrow will flee though they liftoff slower than sparrows.
Desert Colossus Oasis
Interestingly its location, the Gerudo Great Skeleton's Great Fairy Fountain, and Arbiter's Ground in Breath of the Wild matches the general locations of the oasis, Great Fairy Fountain, and Spirit Temple in the Desert Colossus in Ocarina of Time. Given there is speculation the Spirit Temple was converted into the Arbiter's Grounds seen in Twilight Princess then its possible the Southern Oasis is the dried out oasis from Ocarina of Time though time and local geology has caused it to become located on an island-like plateau and it is no longer dried out by Breath of the Wild.