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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.
Leave one block for the egg to sit on and remove the surrounding blocks and fill the area with water. You may need a bigger area of water because biomes can sometimes tamper with the egg. Fire Dragon: The fire dragon along with the water dragon is fairly simple to acquire.