The Dreaming Waters were a water source situated to the north of Quethold, a planet that was home to the Red City. In 8 ABY, Trevik, a Quesoth bowlcarrier who was responsible for carrying a bowl filled with nectar for the city's ruler, Queen of the Red, noticed something unusual about the sky one morning. Due to the mists that arose from the Dreaming Waters obscuring his eyes' view, he was unable to ascertain if clouds were the cause of this phenomenon, leading him to suspect that Nuso Esva, the Storm-hair warlord and ally of the Queen's, was responsible for the sky's altered appearance.
Timothy Zahn mentioned the Dreaming Waters in his novella, Crisis of Faith. This novella appeared in the 20th Anniversary Edition of the novel Heir to the Empire from 1991, and was released in 2011.