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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.
Stores that sell reptiles often carry Chinese water dragons, also known as the green water dragon or Asian water dragon. They originate from the southeast Asian mainland â Thailand, southern China, Vietnam and Cambodia.dult water dragons are, of course, green, ranging from a dark forest green to a light mint green. The lower body is generally white or a very light yellow, while the vertical stripes that run along the sides of the water dragonâs body are a pale green, mint green, aqua or even turquoise in color.