Many of the tips below are also valid on other levels in From Dust. This is a tough level, with lava and water encircling your tribe.
First: Go and build a village at the Amplify the Breath Totem, neatly between the two hazards. This will allow you to redirect the lava and water more quickly.
Next, use the lava to build a wall to the west of the Totem, creating a protecting enclosure on this side. You don't want the overflowing laval to set fire to the vegetation that will begin to grow around your expanding village.
Use the lava again to redirect the water this time, building a wall up at the resevoir in the mountains. Send the water off to the east, which will let you get the Jellify Water Totem nearby.
You can then move the water around, giving you access to the Repel Fire stone - obvious uses for this.
With this done, you can use the exploding trees to destroy the backs of both volcanoes on the map and divert the lava in the opposite direction. The same technique applies to moving lava generally.
Watch for leaking lava/water and sure up any problems with more lava walls.
Once the volcano on the left is erupting, the one on the right is dormant. When this occurs, you can go and collect the Infinite Earth Totem, which allows you to terraform the environment and encourage vegetation growth. Remember to build a wall to protect the village here.
The Repel Water Stone should be collected with the lava out of the way, and finally the Engulf All Totem at the bottom of the map. This needs a wall around it to protect the village again.
You should now be free to get the Memory Stone, and finish terraforming the map with Infinite Earth.
Once you are happy, clear a path to the exit to the north through the reservoir using Jellify Water or Infinite Earth.
A quick tip on using water to help your tribe people:
Remember that you can use water to move your tribe people around. If they are stuck up high, use water that you have absorbed to push them down and then absorb it back up again. If the tribe person has the Repel Water function, you can use absorbed water to speed up their movement.