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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 are omnivorous, but the bulk of their diet should consist of live crickets, mealworms, earthworms, locusts, grasshoppers and feeder fish. Shredded vegetables and small chunks of fruit can make up 10 to 15 percent of their diet.