Paddy has zeroed in on just the right spot for Derrygraney, and the person to consult for more particulars is Gerard Madden who has studied this area extensively while researching the several publications he has issued, including a history of the O'Grady sept in East Clare, a book which I have (but the index has no listing for Derrygraney). According to the legend, the fair lady was in the River Graney which, according to the modern Discovery Map no. 58, ends in Lough O'Grady, and exits out the other side as the Scariff River because Scariff is the area's major town, just before the river empties into Lough Derg. The lady's burial in Tuamgraney/Tomgraney is south of Scariff and southeast of Lough O'Grady. East of Tomgraney on the map (within easy walking distance) is a standing stone, which might mark the legendary burial; I am sure that Gerard Madden can say for sure. His contact info is shown below.
Since this is the stuff of legends, having a few more supporting citations couldn't hurt. All these were from Google Books, which provides both full and snippet views. I did check online articles of Thomas Westropp, the energetic antiquarian who covered Clare, but his articles online in Google Books don't cover this corner of the county. His maps tend to show every little locality and all old monuments, so that is sorely missed here.
Sharon Carberry
East Clare descendant, USA
Gerard Madden
East Clare Heritage Centre, Tuamgraney
eastclareheritage@eircom.net
http://www.eastclareheritage.com
screenshot image from
The Irish ecclesiastical record - Page 664
1885
screenshot image from
The origin and history of Irish names of places - Page 335
Patrick Weston Joyce, 1901
screenshot image from
Catalogue of Irish Manuscripts, p. 494, n.1
by Dept. of Manuscripts, British Museum, 1901
Folklore of Clare: a folklore survey of County Clare and County Clare folk ... - Page 118
Thomas Johnson Westropp, Gearóid Ó Crualaoich, 2000
"... of a mortal father and a sunbeam, and, when told of her ill-matched parents, sprang into Lough Graney, floated down the river Graney to Derrygraney."
The lost and left behind: stories from the age of extinctions - Page 26
Terry Glavin, 2007
"... stream to the place that ended up being called Derrygraney, the Oak of
Grainne. When the people found her, they wept, and they put her in the ground."
also mentions two old stones standing upright in the yard of Alan Sparling, Tomgraney

- Derrygraney legend by Joyce.jpg (42.3 KiB) Viewed 26983 times

- Derrygraney per Brit Museum ms book.jpg (59.08 KiB) Viewed 26983 times

- Derrygraney legend.jpg (40.68 KiB) Viewed 26984 times