Reach the sewer entrance
Start from the main camp. The February demo route goes up the stairs to the upper floor, then uses a rope on a wall hook to enter the sewers. This puts you on the pipe approach to the Hammer, rather than on the wrong side of its bars.
If you are already at the low sewer pipe, continue with the water-level step below.
Return along the pipe with the water raised
Raise the sewer water before the difficult pipe section
The older demo solution uses the higher water level. Trying the same pipe approach while the water is still low is the blocker described by players.
Go to the far end of the corridor
Continue through the sewer corridor first. The approach toward the Hammer is the return trip along the pipes.
Crouch beneath the roof
Follow the pipe back, keeping low under the stone ceiling. Use a crouch-jump where the low clearance makes a standing jump catch on the roof.
Look for the red pipe disappearing under the low stone ceiling in the image below. It is a passage-recognition view, so keep your attention on the pipe and roof rather than the tiny interface.

Watch the creator’s Hammer chapter
Take the Hammer back to metal bars
Use the tool named Hammer. Its short handle and broad head are visible in the held-tool image, and the Workbench crop below shows the matching item name. A War Hammer is a different weapon; do not substitute it for this obstacle tool.
After picking up the Hammer, return to the metal bars blocking your passage and use it on them. A named-key lock is a separate problem: the Hammer is for the bars, not a replacement for a key.

Watch the creator’s Hammer chapter

View the full Workbench screenshot