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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 eat a variety of live food items ranging from crickets, mealworms, king mealworms, waxworms, earthworms, grasshoppers, butterworms, locusts, feeder fish, pinkies and fuzzies. Many care booklets say that water dragons eat some fruit and vegetables.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.