The Rainbow Canyon is canyon colored with multiple colors. At one area in the canyon, there is a flower which a cave hides behind. In the cave, there are lumps of color clay. In one episode of Dragon Tales, Emmy, Max, Ord, Cassie, Zack, and Wheezie run out of color clay and explore the caves to find more.

What they found would change their lives forever...

They found a lot of rainbow clay, and devoured it immediately, having eaten the rest of their rations. They were never seen or heard from again.