Zhao successfully kills the Moon Spirit Tui and incapacitates Yue before she can fix it.
The tides and weather are so thrown out of balance that ATLA becomes an almost fully-submerged planet, with only the tallest mountain peaks remaining as islands; most notably, the Air Temples, Omashu, and the Insane Herbalist’s Greenhouse. The only other territory to remain is Gaoling.
Submerged Territories include the Water Tribes, Fire Nation Archipelago, Freedom Fighter Forest, Ba Sing Se, Foggy Swamp, Kyoshi Island, and the Abbey.
Yue is both waterbending and the Avatar Cycle’s only chance to return. Until then, the return of the moon is the Gaang’s new mission.
Sokka fails to contain his smugness when his sister asks for boomerang lessons to supplement her waterbending.
Northern Water Tribe is one of the first communities submerged due to being the coastal city and epicenter of La’s grief. La wishes to protect Tui’s corpse under his waves.
The majority of Fire Nation territory, including the capital (Caldera City), is completely submerged. What remains of the Fire Nation’s citizens lives on rare mountainous colonies, the navy, mercantile fleet, fishing industry ships, and the elite’s literal showboats.
Fire Navy ships undergo catastrophic amounts of bad luck, so many sinking that it may be a curse from La. Civilians are encouraged to join merchant and fishing ships instead.
The Herbalist’s Greenhouse, Gaoling, and Eastern & Southern Air Temples are the planet’s main sources of food besides aquatic life.
Refugees learn quickly to survive off fishing and farming aquatic plants, learning from Water Tribe members and other coastal residents.
The Unagi is happy to continue guarding the Kyoshi Island residents on their new fleet of ships. It is happy to spend more time with its old friend’s legacy.
The Serpent’s Pass’s namesake, however, is the Unagi’s polar opposite. Though it is happy to explore, stake more territory, eat all the humans flooding its waters.
The Northern Air Temple’s tech-enhanced citizens remain free as always, their gliders becoming an even more valuable transportation method with so little ground to walk on. To be safe, they gain a focus on naval technologies, building the whale submarines early and spreading their borders with floating docks.
Toph is warned of the incoming disaster by the spiritually connected Badgermoles. She, along with her fellow Earth Rumble Competitors are able to raise Gaoling and part of its surrounding forest high enough to create a mountainous island before the floods arrive. Tall enough for even the Badgermoles to remain underground.
Ba Sing Se, Eclipse Invasion, and Boiling Rock Prison Break storylines are either postponed or erased since all those places are underwater.
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