Dragons in China live in Pavilions located in each city. While these pavilions are located away from the general human populace, this appears to be more for the dragons' convenience than an accommodation to any human wishes. The Pavilions themselves are constructed of light materials, and are often heated from below by means of piped hot water. The Pavilions can be either for a single resident, in the case of the more exulted dragons, or are shared by a number of individuals. In most cities there are Pavilions set aside for travelling dragons, comparable in function to a human inn or hotel, so that a dragon can always expect a comfortable night's rest where ever they may be.
Until 1806 Dragon Pavilions were unknown in Europe. At this time two events almost simultaneously introduced the concept to Britain and France. The arrival of Lung Tien Lien at the court of Napoleon meant that France instigated a large number of Chinese customs specifically to please Lien. In Britain, the return of Temeraire from China brought over the same ideas. However in Britain, the financing of such building was the responsibility of the individual, not the state.
The first British Pavilion was built of stone rather than the lighter materials used in China, as an accommodation to the British climate. The Pavilion was paid for by William Laurence at the behest of Temeraire and used to house several sick British dragons, to demonstrate the concept of Pavilions and attempt to alleviate some of the symptoms of the Dragon Plague.
Following the Battle of Shoeburyness, the unharnessed dragons who had been led by Temeraire began to build their own pavilions using materials purchased by the sale of golden eagle standards they had captured from French regiments. This led to some grumbling from the harnessed dragons stationed at the Dover covert, so the human officers took up a collection to raise funds to build them pavilions as well.