Start out by talking to one of the two dwarves, Austri or Vestri. These dwarves live in cabins on either side of White Wolf Mountain – one is northwest of Taverly and the other is just north of Catherby. It’s easier to talk to the dwarf on the Catherby side of the mountain since all of the other events will be taking place in that area.
During the conversation, you’ll reach a point where you can offer to be a friend to the dwarf. There will be some more dialogue about the Fishing Contest in Hemenster. Eventually, you’ll be given the Fishing Contest Pass.
Walk over to Hemenster. On the way, pick up the garlic from the house in Seers’ Village if you haven’t gotten it yet. Also, make sure that you have the spade, fishing rod, and at least 5 gp in your inventory. When you get to Hemenster, visit Grandpa Jack in the house located in the north part of the town. He’ll give you some tips for the contest, including information about the red vine worms and where to fish at to win the contest. He’ll also give suggestions that lead to using the garlic in order to “steal" the best fishing spot away from the stranger that’s dressed like a vampire.
Take your spade and go to McGrubor’s Woods. You may also want to take some food here, because there are some aggressive guard dogs in this area. If you’re careful, you should be able to run past them to reach the red vines, but carrying a little food in case you get trapped is a good back up plan. The entrance to McGrubor’s Woods is in the north part of the area. You won’t be able to enter through the house. Instead, squeeze through an open area in the nearby fence.
Once you’ve gotten through the fence, run over to the west side of the house – this is where the red vines are. Using the spade, dig up several red vine worms. You may also want to wait here a little bit to make sure that your “run" energy is fully replenished before dashing back to the hole in the fence to leave the area.
Now, return to Hemenster with all of the needed items, and enter the Fishing Contest. Before you start to fish, make sure to put the garlic in the pipes near the area where the stranger dressed as a vampire is fishing. Wait a few moments, and he’ll smell the garlic and change fishing spots. Then, you’ll be allowed to fish in that spot.
Continue to fish until the end of the contest is announced – this shouldn’t take very long. During this time, you should catch at least one giant carp. Turn your fish in to the judges and collect the trophy.
Return to the dwarf that gave you the Fishing Contest Pass and give him the trophy. This will complete the quest and you’ll be awarded with 2437 Fishing XP and access to the underground tunnel shortcut between Taverly and Catherby.