Donkey Kong Country 2: Diddy's Kong Quest
Crocodile Cauldron first appeared in Donkey Kong Country 2: Diddy's Kong Quest.
In the game, this world is the second where Diddy and Dixie venture throughout on their quest to save Donkey from The Flying Krock. The world itself has five levels and has Kleever as a boss. There also are a couple of mining shafts in the world where the Kremlings possibly mine for minerals. There's also a sunken ship in the world, implying that the world itself could've been a harbour at one point and not always a volcanic area.
At the end of the game when Kaptain K. Rool is defeated for a second time in the Lost World, he is knocked into the energy source for powering Crocodile Isle. Then, as his bulkiness was blocking the energy source from powering up the island, he eventually shot out of the island's energy source and into the waters once more. The energy build-up then caused Crocodile Cauldron, along with the rest of Crocodile Isle to sink underwater.
Donkey Kong Land 2
While not physically appearing in Donkey Kong Land 2, Crocodile Isle was resurrected from the waters. As the island resurrected, Crocodile Cauldron and Krem Quay somehow merged into Krem Cauldron. The memory limitations is likely the reason why this was done.