This dragon fly is dead. I found it on the lawn of a friend's house, still in great condition. Dragon flies are wetland bugs. They live near water where the females lay eggs. The juvenile stage of dragon flies (and the closely related damsel fly) are called nymphs; and these little alien-looking bugs live in the water until they become mature exoskeleton-having, wing-bearing adults. You can always tell a dragon fly because of its large size and when it lands it holds its equal-sized double wings out, like the pictures above. And they come is a variety of pretty colors.