I backflipped into the painting to make the water level extra high. This way I could swim to the grate, climb on the grate and dive into the channel. I swam into town and drained the water. On the right side of the steeple is a Vanish Cap. We put it on and run through the wall that's the same color as the wall in front of the steeple where the Red Coins are to the other side of the steeple, where there is a large cage. We run into the cage and let the power run out. I then wall jumped part-way up the white stone, then climbed up to the Star.
Star Get #89, 2 Coins, 4 Lives
As I did not backflip into the painting, I raised the water to the highest level, then used the cannon to reach the grate. I got a 1-up and drained the water level. We need the Vanish Cap power, so we need Luigi. Thankfully, there is a Luigi Cap in the town. I grabbed the cap and ran to the right side of the steeple. There is a Power Flower there. We use it to run through the wall in front of the steeple into the cage. We backflip up the white stone and climb to the Star.
Star Get #110, 0 Coins, 8 Lives
The next Star is Soaked Silver Stars.