Bottle #1:
One of the four bottles in the game can be bought in Kakariko village, just
northwest of the village center statue. There's a man on a carpet asking for
100 rupees for it, and at the point you'll get it, it will put a hole in
your rupee bag, but it won't be a burden for you for too long.
Bottle #2:
Another bottle is in Kakariko Village again, this time it's in the
southeast-most building, taking the back entrance in. You cannot get the
bottle by going through the front, it has to be in the back. The bottle
itself is in the chest in the building there.
Bottle #3:
You will need the flippers to get this bottle, which is located right under
the bridge going from near the entrance to the East Palace area and the area
east of your own house. There's a person sleeping under this bridge, talk to
the person to wake it up and it'll give you the bottle, completely free of
charge too.
Bottle #4:
This bottle is obtained much farther in the game, you'll need access to the
Dark World and have the Titan's Mitts. The bottle is in a chest again, just
east of the ghost town which was Kakariko village, now called the Village of
Outcasts, inside the old blacksmith, though somehow, the chest will taunt
you (That's probably the most scary thing in the game, heh) and tell you you
can't open it. Show that chest who's boss by heading over to the Old Desert
area of the world of Light. Remember the man who didn't want to talk to you
much, talk to him with that chest behind you and he'll open it for you, if
you keep his secret about him being a thief (oops, I just said his secret
*eyes around nervously*).
NOTE: You cannot dash with the chest, it shall not follow at that speed, you
must walk it all the way.
The Importance of Bottles?
---------------------------
Well, the use of bottles is that you can carry things around in them that
will help you on your quest, there are many things you can put in them, so
let's get started.
Faerie (or Fairy or Faery or whatever you want to call them):
Faeries are cute little creatures with wings that heal Link up when he
touches one. These may be caught with a butterfly net to store in a bottle
for later use (take about a nice prison...). These little ones make you
recover seven hearts, which isn't much compared to other healing items, yet
faeries are special. If you die, and you have a faerie in a bottle, it'll
revive you, thus not getting the game over screen.
Red Potion:
This potion is a heart recovery potion, used to heal yourself up. The effect
of this potion is full recovery compared to the seven hearts the faeries
give to Link, which is pretty useful in long fights if you are having a hard
time somewhere. Remember, it must be in your item slot to be used, it won't
be used up by itself to heal you in critical moments.
Green Potion:
This potion heals up your magic meter, which is important to cast special
skills or even just to use your lamp on torches. The Green Potion shall
recover all your magic meter, so if you're short on that, use the green
potion and watch the magic meter bar fill itself up again.
Blue Potion:
This may be the best potion in the game to some, the effects of this potion
heals up all your heart meter and your magic meter. It may sound like a
great deal, though personally, I rarely use the blue potions, anytime I need
healing or magic recovery, I use a green or red potion, since I don't need
to recover both up. Only use this in dire situations, where both the heart
and magic meter are low to reap the maximum out of your potion.