By a small lake in the Nant Y Coed Nature Reserve. The little lake is actually a fish pond, built circa 1912, for Mr. Massey who owned Plas Heulog higher up the hill.
In the 1920s and 1930s there was a refreshment hut by the fish pond. There was an entrance charge and an extra charge for fishing.
The location for this cache was inspired by a story for kids, reflected in the title and the clue. A good geocacher should have no trouble finding it however, even if you don’t know the story, but just in case, here's a snippet...
"A gruffalo? What's a gruffalo?"
"A gruffalo! Why, didn't you know?
"His eyes are orange, his tongue is black;
He has purple prickles all over his back."
"Where are you meeting him?"
"Here, by this lake,
And his favourite food is scrambled snake."
"Scrambled snake! It's time I hid!
Goodbye, little mouse," and away Snake slid