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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.
Chinese water dragons look a lot like small iguanas and spend a lot of their time swimming. They are popular pet reptiles due to their smaller size but their care requirements are more intense than most people anticipate.