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literally a "water wolf," this was a "mythical aquatic animal or neotropical otter," a mammal the size of a small dog, perhaps a nutria
There are images of this animal on both folios 33v and 34r of the DFC website mentioned above. This source also mentions that the animal is a quadruped with claws that resembled those of the tecuani of the forest, and it had a tail like a caiman/crocodile. The animal was associated with a lagoon in Santa Cruz Quauhacalco. The spring water from that lagoon traveled to Santiago Tlatelolco.