Unable to resist a mystery, Nancy works to discover who, or what is haunting the inn.

One by one, the guests leave the Ryokan Hiei until Nancy is left only with the secretive family that owns the inn. Strange events, supposedly caused by a woman who died there mysteriously, are scaring away guests. Once she arrives at her Ryokan, however, she discovers that not all is as it seems. Nancy Drew travels as an English teacher to Kyoto, Japan with friends Bess Marvin and George Fayne as a reward for solving the preceding mystery ( Nancy Drew: Trail of the Twister).

The game is loosely based on two books, Tour of Danger (1992) and The Thirteenth Pearl (1979). There are two levels of gameplay, Junior and Senior detective modes, each offering a different difficulty level of puzzles and hints, however neither of these changes affect the actual plot of the game. Players take on the first-person view of fictional amateur sleuth Nancy Drew and must solve the mystery through interrogation of suspects, solving puzzles, and discovering clues. It has an ESRB rating of E10+ for moments of mild violence and disturbing imagery. The game is available for play on Microsoft Windows and Mac OS X platforms. Shadow at the Water's Edge is the 23rd installment in the Nancy Drew point-and-click adventure game series by Her Interactive.

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