Waterhorse Dragons received their name due to their horse-like physique and endearing behavior. They are capable of surviving out of water, and when on land their skin secretes a gelatinous goo to retain moisture. However, their large paddle feet are better suited for swimming, and waterhorse dragons tend to move very awkwardly when on land. Waterhorses are very friendly dragons and enjoy playing with humans.

Dragons are highly-intelligent reptilian creatures that—from a human perspective, at least—appear to live forever. Many different varieties of dragon exist, each with their own unique qualities, habitats, and behavior. Adolescence in dragons is usually marked by the growth of a hatchling’s wings, although not all breeds of dragons grow wings and some breeds have other traits that indicate the beginning of maturation. In Galsreim, dragons and humans coexist peacefully.

High up in the eastern mountain range, almost exactly half the way to the top of the highest peak, there's a large, peaceful lake fed by a subterranean source. Living in that lake is a pod of Waterhorses. Around the lake there's a wide area of meadows, providing rich nutrition to a variety of animals as well as a home to a group of Ridgewings. Although these two breeds seldom meet, these specific Waterhorses and Ridgewings have formed a close bond, living together as one.

Despite all appearances to the contrary, Flurp wasn't born within the community. One day a Magi dragon appeared out of the blue, holding a small Waterhorse egg. "Look I know this is unusual but how would I make sure he lands in a safe place if I simply 'ported him—I HAD to fly around until I found some place, and frankly my claws are getting tired." And with that the Magi flew off without even giving his name, leaving Flurp in the care of his foster father Giafs to become a beloved member of the community.