The red dwarf lived in the woods. He was known as Red Dwarf. What did he do all day? He dyed cloth red. He made red hats and capes for dwarf children.

Red Dwarf lived alone. He had no friends, but he had a dragon. He called her "Odo." Odo was a dark green dragon. Her belly was sunset orange. The dragon helped Red Dwarf. Odo carried the hats and capes to a shop. She left the bundles at the back door. Aldred, the shopkeeper, lived above the shop. He found the bundles. He sold the hats and capes in his shop. He sent the money to Red Dwarf. Aldred did not know that a dragon dropped off the goods. He thought Red Dwarf came during the night.

One starry night, Aldred could not sleep. He looked out his window. A dragon flew by! Aldred was dismayed. He did not know what to do. He did not sleep anymore that night.

When day came, he spread the word that a dragon was in the area. The town's dwarves were afraid. They passed a new law. It said that dragons were not allowed in the land. Anyone who kept a dragon would go to jail.

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