Two of Everything). It has not rained since Ah Bao found the stone and the villagers are suffering the famine caused by drought. Ah Bao dreams of a water dragon and sets off in search of him. Along the way he meets various animals who give him pieces of themselves and warn him about a greedy red monster. I can't tell anymore without ruining the story, but the water dragon does indeed save the villagers from drought.
It would seem from these and other stories set in China, that this country also sees the presence of water as a valuable natural resource that requires looking after.