Buckets have multiple purposes. They can put out fires and be used to cook bread. Also you can just drink from it after being filled with water.  To fill a bucket you must equip its tool and click on a nutritious water source, like ocean water. There are 2 different buckets, currently there are: Stone bucket and the Wooden bucket. they are both made from hollowed items and need a rope in able to make it hollowed med stone and hollowed small wood. It doesn't matter which one you use, they all have the same uses and durablity.

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