Celt. Folklore a water spirit, supposed to take the form of a horse and drown people
noun
any of a breed of medium-sized sheepdog with erect ears, a pointed muzzle, and a thick coat of black, tan, red, etc.: first bred in Australia from the collie and wild dingo
See kelpie in American Heritage Dictionary 4
also kel·py(kĕlˈpē)
nounpl.kel·pies
A malevolent water spirit of Scottish legend, usually having the shape of a horse and rejoicing in or causing drownings.
(kĕlˈpē)
noun
Any of a breed of sheepdog originating in Australia.