Okay, so after looking over every single island in the lake, I cannot for the life of me find the village supplies. Has anyone found it or have any idea of where it is??

I had a hard time finding it too. :/
These directions may be a little inaccurate, but they should still help:

Go directly south of the dock until you reach an island. On it, there should be two wooden crates. The darker crate is the one with the supplies.