Head to gra-Bol's house, located across the river and next to the South Wall Cornerclub. It's the big house, towering above the others. She's an outlaw, so there's no need to worry about getting a bounty - just attack her right away. She is equipped with an iron war axe and a few pieces of netch leather armor.
If you talk to Percius Mercius in the Ald'ruhnFighters Guild about this quest, he'll tell you that Dura gra-Bol is wanted for murder, so you shouldn't feel bad about killing her.
If you have already killed Dura Gra-Bol, Eydis will still reward you with 250 gold.
You can use gra-Bol's house as your own once she's dead, but every container in there will flag your items as stolen.