The Dragons
The dragons are spirits of the waters. “The dragon is a kind of being whose miraculous changes are inscrutable.” In a sense the dragon is the type of a man, self-controlled, and with powers that verge upon the supernatural. In China the dragon, except as noted below, is not a power for evil, but a beneficent being producing rain and representing the fecundating principle in nature. He is the essence of the yang, or male, principle. “He controls the rain, and so holds in his power prosperity and peace.” The evil dragons are those introduced by the Buddhists, who applied the current dragon legends to the nagas inhabiting the mountains. These mountain nagas, or dragons (perhaps originally dreaded mountain tribes), are harmful, those inhabiting lakes and rivers friendly and helpful.
http://www.sacred-texts.com/cfu/mlc/mlc09.htm
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