I heard this long long ago and by a strange coincidence remembered.
$this->bbcode_second_pass_quote('', 'A') woodsman was chopping down a tree for firewood when his grip slipped and the axe flew off and dropped into a river. He fished for the axe with his hands but the water was murky, the sediment deep and he could not find it.
A woman rose out of the water and asked what he was doing. The woodsman replied that he was searching for his axe, which he dropped into the water.
The woman reached down into the water and produced an axe made of gold. "Is this is it?" the woman asked. The woodsman replied that it was not.
The woman then reached down into the water and produced an axe made of silver. "Is this is it?" the woman asked again. Once more, the woodsman replied that it was not.
The woman reached down into the water yet again and produced an axe with a worn steel head and wooden handle. "Is this is it?" she asked. The woodsman replied that it was, and accepted it with gratitude. The woman remarked upon his honesty and let him keep the gold and silver axes as well, before sinking back into the water.
Another woodsman heard word of this story and went down to the river. He threw his axe in, and a woman rose out of the water and asked what he was doing. The woodsman replied he was searching for his axe, which he dropped into the water.
The woman reached down into the water and produced an axe made of gold. "Is this is it?" the woman asked. The woodsman replied that it was.
The woman replied that it was not, and sank back into the water, leaving the woodsman without his axe.

