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.

On a mountain that was probably named by someone with clout in exploring but is known to locals simply as "this mountain", there's a large lake that is home to a bunch of waterhorses and ridgewings. Life there is peaceful—no baikalas or nexuses or any such things have set foot or flipper here, not that there are any particularly special resources that would make the territory a target, anyway. Most of the residents enjoy playing beach volleyball and holding beach blanket bonanzas despite there being no beaches, pastimes started by Horsewest. Unlike many of the residents there, he migrated from a seaside cave network and had not intended to stay on this mountain, but travel had made him tired, so he shrugged and settled down. The only things he missed about his old home were the beach activities, so he introduced them to the dragons here.