The Dragons were based in San Antonio, Texas, and played at the Freeman Coliseum and occasionally the Alamodome.

The team was co-owned by Bruce Saurs, who owned the Rivermen franchise and had been planning on folding the IHL franchise due to financial losses, and Don Levin, the co-owner of the Chicago Wolves, and relocated the franchise to San Antonio even though Freeman Coliseum was already home to a Central Hockey League (CHL) team, the San Antonio Iguanas.

[2] For the first month of the 1996–97 season, the Dragons wore temporary white with green trim and logo (home) and black with green and white trim and logo (road) jerseys because the new jerseys had not come in yet.

[citation needed] The Dragons won the division championship in their first season in San Antonio.

Following an overhaul of the front office and the loss of Torchetti, the Dragons floundered in their second season by finishing in last place in the league.