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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 Dragon Hatchlings. Hatchlings are 1 inch snout to vent, and 5 to 6 inches in total length. The upper surfaces of their body are a brownish green, while a pale green to white covers their lower abdominal area.