This legend is from the 50s, I believe. The city is Curitiba.

A man and a woman danced through the night; and, after leaving the danceteria, it was cold outdoors, so he lent her his black cape. He takes her home and then leaves, only to realise too late that he forgot his black cape with her.

In the next day, he goes back to her home, to retrieve his black cape and flirt a bit. Her parents meet him; and they tell him that their daughter passed away years and years ago. They even show him a photo of her, and to his puzzlement the woman in the photo - allegedly dead for years - was identical to the one who danced with him, in the preceding day.

He asks her parents about her tomb. He goes to the cemetery, still a bit sceptic, but with some carnations to leave on her tomb “just in case”. She was indeed buried where her parents indicated. And his black cape was there, neatly folded, over the tomb.

There’s a large cave dubbed “Satan’s Cave.” Compasses always point into the cave. When the NYC reservoir system was created, the municipality bought all of the homes in the low altitude towns. They then dammed up the area and let the rainwater collect, flooding the neighborhoods, houses and all. The bottom of the cave filled with water, and began billowing cool water vapor all year round.

It turns out the cave is one of the largest known lodestone deposits. Lodestone is naturally magnetic, which is why compasses always point into the cave. The cave originally had a massive drop shortly after the entrance, that led into one of the aforementioned towns. When the town was flooded, the reservoir water piped up the cool cave, causing the water vapor to be perpetually emitted.