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The Snake Coin is a puzzle item found in a baby carriage inside of the Wood Side Apartments courtyard pool in Silent Hill 2. The pool has been drained and is completely empty, save for the aforementioned inexplicably placed baby carriage guarded by three Lying Figures.
The coin is one of three that must be used to solve the Coin Puzzle in Room 105 of the Blue Creek Apartments. The puzzle yields a house key when solved, which can be used to enter Room 209 on the second floor.