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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.
Caring for Chinese water dragons is not all that difficult but their needs are very specific (as are most reptile speciesâ). They are arboreal lizards, meaning they climb and like to be up high. An ideal enclosure for one or more adult dragons would measure 6 feet tall, 3 to 4 feet deep and 4 to 6 feet long.