Hounds of Tindalos move to the nearest Investigator. I assume "nearest" is counted by tracing a valid movement route. But from Devil Reef there is only aquatic movement, except to Y’ha-nthlei. Well, the Hounds of Tindalos don't have aquatic movement, so we ruled, that they can't move, except to Y’ha-nthlei. Anyways it would be hard to take into account all possible aquatic moves when counting for the nearest investigator.

Is this correct? is there any official answer?

This is not the way I play it - the Hound inhabits and moves through the angles of time (we inhabit and move through its curves), which means it is stopped (according to some) by a *perfectly* spheroid chamber, but I hardly think it would be stopped by water, Just ignore movement issues like aquatic and move towards the nearest investigator, using the train oir the boat if you have to.

There is no official answer so far, but I play that it still comes ashore, using this tier system:

1. If there's an investigator in the adjacent space (Reef to Y'ha or vice-versa), it goes there.
2. If there's an investigator in Innsmouth, it moves there. If there are multiple, it traces from Falcon Point.
3. If there aren't investigators in Innsmouth, but there are on other boards, it picks the investigator who's closest to his town's train depot. No one town has precedence over any other, though if you want to be thematic about it, Arkham is closer to Innsmouth than Kingsport is, and Dunwich is the farthest.

If the Hound is in Innsmouth proper and there are investigators off shore, I use this system:

1. Investigators in Innsmouth proper take precedence over those who are off-shore.
2. If the only investigators are off shore, both Devil Reef and Y'ha-N'thlei are equidistant to the Hound.
3. If the only investigators are off shore AND on other town boards, the off-shore investigators take precedence.