Mudskipper hides are given to Nung, at the Mogre Camp during Recipe for Disaster, in order to gain access to the crab pen.
The hide is a drop from mudskippers. Contrary to popular belief Mudskipper hides are not used to create mudskipper hats or flippers, you must kill Mogres to obtain these items.
If taken out of water a message appears saying "The Mudkipper Hides all dry out and crumble on contact to air."
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