Well, the way it worked for me was to come down from Foibles, make a right through the bear/bandit area untill you get to the river. There I got in a fight with some bandits, and I got aggroed by skales. By the time I was done, my quest marker had been updated to return.
My guess, is that you don't have to kill the whole river, just one or two broodcallers near the rivers edge. If it doesn't work at first, rezone to Foibles and try it again. I have had several quests that didn't work the first time, only to work fine later.
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