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Water Dragon Location. Water Dragon. The water dragon is a large species of lizard native to the forests and jungles of Asia and Australia. Water dragons are arboreal animals meaning that they spend most of their time in the trees, often close to a large body of water.
Water mythology. Scottish mythology tells us Ashrays, or Water Lovers, are completely translucent water creatures that are often mistaken for sea ghosts. They can be both male and female and can be found only under water. Being completely nocturnal, one would never come across such creatures during the day.