Is there anything of interest in the tunnel (or is that the tunnel that we investigated already?) How about that small chamber that the little dude is in?
The room with the character in it is where you are. That character just shows where the party is (I've updated it so that we have figures for all of you now).
To the left the passage appears to open into another small room. To the right the passage curves a bit and widens but continues on beyond your torch light.
The sound of the running water is coming from the left.