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 small pod of Waterhorses. Around the lake there's a wide area of meadows and alps, providing rich nutrition to a variety of animals as well as a home to a group of Ridgewings. Although these two breeds seldom have an opportunity to meet, these specific Waterhorses and Ridgewings have formed a close bond, living together as one.

Schaukelpferd loves nothing more than to look after the little ones, playing with them, rocking them back and forth as if he was a wave himself. Some of the young Ridges sometimes claim to get seasick when he whirls them around a bit too wildly but Schaukelpferd is quick to adjust his speed going as slowly as necessary so the little ones feel comfortable. And after a while even the least courageous hatchie will demand 'more' and 'faster' until the onlooking parents become queasy.