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.

The original story of Moi Lune is mostly forgotten, but most know that it starts with two lovers and ends with a betrayed and murdered woman. The spirit of the vengeful woman was rumored to have taken the shape of a waterhorse know as Moi Lune. The saying "hell hath no fury like woman scorned" is proven to be very true in this legend, as every full moon, the time when the fair lady was killed, some poor soul is lured out into the water and is never seen again. Moi Lune is probably just a regular waterhorse with a healthy appetite and the legend is probably stemmed from the fact that most of her victims are dashing young men. Though there is much evidence that the legend of Moi Lune is just a bedtime story, there are also many startling instances where the legend seems very real. The sailors of the village have a curious dread of the foggy nights, and most will refuse to even go near their ships during a full moon, preferring instead to go to the tavern and reminisce about lost friends.