AKA, Violet Goby, Dragon Goby, or South American Dragon fish..
It is found in coastal waters, as well as riverine systems ALL over the place. If I remember correctly, it has been found as far north as North Carolina, all through the gulf of mexico, and central america, and as far south as Southern Brazil. Infact my collecter out of Lima, Peru can collect them as well, even though most are harvested out of the gulf of mexico, I think. They are also used in chinese markets as food. You can buy them by the pound.
They are an 'anadromous' fish, which means they can be found in Fresh, Brackish, and Saltwater. Just like most anadromous fish, they need to graduate into higher salinity levels as they mature. This helps with osmoregulation, as well as benefiting other physical attributes that all anadromous fish have. They are often collected as Juveniles, because it is easy to net them in the masses, while they are breeding in freshwater. The adults can grow up to 2 feet, and be as fat around as a sausage. The adults are often found in coastal pools and lagoons.
They are a sand-sifting goby, also known as a filter feeder. In the wild, they siphon sand/silt through their gills continously in search of micro-organisms, tiny crustacea, and worms. It easy to get them to adapt to small frozen foods such as brine, mysis, tubifex, bloodworms. It is best if you can quarantine them first and get them used to eating prepared food. This is so they can get used to aquaria life, and foraging for food without sifting (This is the biggest obstacle they have to overcome, IMO).. Often, they are wild caught and have not been properly weaned by the local fish store, as most LFS have no idea of their care requirements, and feed them flakes and sinking shrimp pellets. After becoming adaptable to aquarium life, they will actually sense food within the tank, and come to the top to feed on moist cichlid pellets.
They have no teeth, being a filter feeder, so soft food is a must. I find that Isolating them and 'Target' feeding them small frozen foods with a turkey baster is the best way to get them eating properly. Once they are in a community setting, you can use the 'target' feeding method to insure that he is getting enough food at the bottom of the tank. If you have aggresive eaters who relish frozen foods (Which fish dosn't..), then the target feeding with the turkey baster is a must. Alot of people have had success with sinking pellets, but I find they are much more detrimental to your water quality, than using frozen foods. Frozen foods you are almost guaranteed they will be eatin within a short amount of time.. The sinking shrimp pellets will often get compacted behind/below/around decor and other things. I have never seen a goby go after sinking shrimp pellets or anything that isn't frozen, but that is the feedback I have got from a few customers.
Also, I saw one report of a man who used large sponge filters to feed them. He said the living organisms which grew on these 'massive' sponge filters was all the food they needed. He showed me a video of them litterally 'latching' onto the sponge filter and sucking out the organisms and debris. He said he intentionally let bloodworms collect on the sponge filter to teach them how to do this. Now he keeps them in his tanks specifically to keep his sponge filters clean. Crazy.
Many people give bad information of them being aggresive (FU PetCo Guy.), and eating small fish.. They are not a polypterus, they are a blind goby. Yes, they might eat fry if it accidently swims into their mouth, but thats about it. They are territorial towards their own species, but I have seen many people keep them togethor. You just need to give them each individual hiding spots. They will often choose a cave, and stay indefinately. I have noticed they will swim in place and use their tail as sort of a 'Feeler' for boundries. Due to them being nearly blind, they will often scurry around just to get a sense of their surroundings.
I have read keeping them in FW longterm will stunt growth, and eventually lead to 'red tumors', and death soon after. I have kept one live and healthy in a FW tank for quite some time, but never to its full expected size. I also kept one very well in a Brackish Tank, but then the puffers decided to make him dinner one night. I also keep one in my full saltwater tank.. He is great for those of you who are looking for a sand-sifting fish that isn't super sensative, or needs special care requirements. He eats through my live sand bed all day, and never seems to deplete his food source, faster than it can reproduce. Great for keeping a deep sand bed 'turned over'. Oh, and I didn't 'drip' acclimate him and all that hoo-ha, I just threw him in. Hopefully he won't get tangled in Live Rock, like the first one did

Dummy.
If you are paying over $6 for one, you are paying too much.. They are a dime a dozen when collected/imported. They were available as early as the 70s, from what I hear. Back then they were called the 'Violet' goby, and there was little to no interest about this 'Violet' hideous creature, that looks like he belongs at the bottom of the ocean. Not to mention, back than with technology and aquaria knowledge lacking, many people had a hard time keeping them alive. This would discourage importers, wholesalers, and LFS from carrying them, not to mention customers could not keep them alive either.
The evolution of Aquria and marketing however has made this fish what seems to be a 'main-stay' in LFS now a days. Even PetSmarts/Petcos/WalMarts carries these things, when before you could only find them at a specialty fish store. In the mid-90s (?) someone then got the idea of giving them the name 'Dragon Fish', after this happened, Sales begun to climb drastically. The name 'Dragon Fish' written on the glass would catch the eye of the walker-by, and they would actually stop to take the time to 'look' for the Dragon Fish. It would often be missed or walked by when called 'Violet' goby. Not to mention kids and dolts alike would enjoy telling people about the 'DRAGON fish!'.. ooo0o It sounds so scary. I often get asked 'Will this guy eat feeder fish..', just because of the 'fierce' name that has been assigned to it. When in all reality its a completely non-threatening fish. Hence, one of the most popular and overated fish of ALL-TIME, and ONLY due to it's STUPID name: Aka, BALA SHARK. ooo00o00o Look at my 'Shark!' and my 'Dragon!' Oooo00o
Hope that helps!
Sorry for rambling..Quick Reply, uh huh.
Miles