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.

Cheerful but indescribably clumsy, Plays in Puddles All Day Long is one of the more naive dragons in the cave.  Plays in Puddles All Day Long, or "Pip", as he prefers to be called, is willing to attempt to make friends with anyone, even those who wish him harm.  This has gotten him into quite a bit of trouble, as he will approach predators and greet them cheerfully, getting only an attempt on their part to end his life early.  Fortunately for him, he has so many friends who love him for his kind, guileless attitude that there always seems to be someone nearby who will help him in times of crisis.  More often than not, however, Pip struggles against their attempts to save his life, frustrated that they, for reasons that he is unable to grasp, won't allow him to make friends.  Fortunately for his rescuers, however, Pip has a very short attention span and, more often than not, these incidences are forgotten by the next day.