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Greek Island Hydra, Greece. Hydra (Greek: Ξî´ïα, Pronounced [ˈiã°Ra] In Modern Greek) Is One Of The Saronic Islands Of Greece, Located In The Aegean Sea Between The Saronic Gulf And The Argolic Gulf. It Is Separated From The Peloponnese By Narrow Strip Of Water. In Ancient Times, The Island Was Known As Hydrea (ΥδïÎî±, Derived From The Greek Word For Water), Which Was A Reference To The Springs On The Island.