Re-told Celtic Tale: The Kelpie, - The Evil Water Horse...

The Kelpie is an evil faerie who lurks around ponds and lakes in the British Isles.  He looks like a pretty, friendly pony, but he's really a murderous monster.  He especially likes to kill children.  Once the children touch him they can't let go.  Then, the kelpie dives into the pond to take them to the bottom of the water where it kills and eats them, or the other way around...

Long ago a highland Scottish village was terrorized by a particularly cruel and voracious water horse.  Some people of the village watched in helpless horror as seven children approached to pet the kelpie and then mount his back.  They shouted to the children to get away, --- oh, please, please get away, knowing the creature was a water horse, because they could see his back elongating to make room for each additional child!  But, very sadly, to no avail.  The kelpie dashed into pond and the children were never seen again.

The people of the village went to a blacksmith to ask him to help them because a kelpie, being a faerie, is very vulnerable to iron, the metal known to be poisonous to all fey.  The blacksmith made a number of special daggers, hooks and pikes to kill the vicious kelpie.  And, bravely, the valiant and skilled blacksmith then slew, by inches, the terrible water horse.