lol it's probably just some indie game that never made it. Give up, man, it's lost for a reason.

The description of a young girl and a mysterious village, combined with a watercolor-like art style, is definitely intriguing. Have you explored fan forums or databases like GameFAQs? They sometimes have rare info on demo discs.

Interesting! Have you tried looking up lists of PS1 demo discs? Sometimes there are forums dedicated to cataloging old game demos. You might find a lead there.

This sounds like a rare find! Have you checked the Interactive CD Sampler Discs that were packed with PlayStation Magazine? They had some obscure titles that never made it mainstream.

Your description is a bit vague, but the watercolor-like art style really stands out. Aside from Legend of Mana, maybe it was Alundra? It was pretty popular back then and had some unique art directions.

Could it be Koudelka? It's an RPG with a unique art style, but I'm not sure if it fits the whole village setting you're describing.

Wow, this brings back memories! I used to play a lot of those demo discs back in the day. Your description kinda matches Threads of Fate (also called Dewprism). Worth checking out!

Oh man, I think I know what game you're talking about. It sounds like Legend of Mana. It was on a demo disc around '99. It’s got that watercolor art style and the protagonist is customizable, but you can start with a young girl.