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.

Keoli and her sister, Keoro, were swept away from their home when a horrible flood hit. As they were helplessly carried down the raging current, Keoli blacked out. When she awoke, she was in a strange room, being watched intently by a dragon, whom, after inquiry, turned out to be Reulae, the Chief Apothecary of the Aerithe Clan. Further conversation revealed that Reulae had found Keoli and her sister washed up on a riverbank near Reulae's hut. The only reason that Keoli had survived was because Keoro protected her, though at the cost of Keoro's life. Keoli took this to mean that Keoro's death was her fault, and thus fell into a state of depression, which would have continued for the rest of her existence, if not for the sudden appearance of Casou, a traveling merchant. He spent numerous hours with Keoli, replacing the hole in her heart with love, which, in time, Keoli grew to return. Now, Keoli and Casou are living happily together as a part of the Aerithe Clan.