It is fairy palaces inside a mill.

Everything is powdered over white, like sugar on pancakes when you are allowed to help yourself.

And he opened a door and showed us the great water-wheel working on slow and sure, like some great, round, dripping giant, Noel said, and then he asked us if we fished.
'Yes,' was our immediate reply.
'Then why not try the mill-pool ?' he said, and we replied politely; and when he was gone to tell his man something we owned to each other that he was a trump.
He did the thing thoroughly.

He took us out and cut us ash saplings for rods; he found us in lines and hooks, and several different sorts of bait, including a handsome handful of meal-worms, which Oswald put loose in his pocket.
When it came to bait, Alice said she was going home with Dora and Daisy.
Girls are strange, mysterious, silly things.

Alice always enjoys a rat hunt until the rat is caught, but she hates fishing from beginning to end.