There was once a very poor man who lived near the forest. He was able to earn enough for a bare existence by cutting firewood, which his wife would barter for rice in the market place.

One day, when this man was cutting wood at the river's edge, the ax slipped from his hands and fell into the water. Although the woodcutter searched for it everywhere, it was not to be found. Discouraged, he sat down on the bank, lowered his head sadly, and wondered how he would be able to earn a living in the future. When the man raised his eyes again, he saw a little old man standing in front of him. The newcomer asked the woodcutter the reason for his unhappiness. The latter described what had happened and added that the lost ax had been his most valuable possession. Only with it would he be able to earn his daily rice.

"I am the dragon of this river," said the old man sympathetically, "and I am going to help you. If you will wait here for a minute, I will recover your ax for you."