ussnorway: It's hidden… no Ranger or low senses = you turn on 'search icon' (don't use this around enemy) and or cast 'detect secrets' then search around the crypt steps.
Ime;
1. He'Li place in Arnika always has one in one of the chests.
2. Fuzzfas sometimes sells them as well… shop in upper trynton.
3. The retro in cemetery always has at least one as well.
Note it's not a major issue if you come back later as it just stops un-dead from spawning around that area… also pays a small experience reward but you can come back to it.

Broudo: Can anyone help me please? There is supposed to be some Holy Water somewhere around the Graveyard in Wizardry 8. You're supposed to use this on the spirit in the middle of the Graveyard. I've looked for it, and looked in my party's inventories. Including the Party Inventory. Nothing.

If anyone knows the answer, I would be grateful.