Mexico's famous "water monster" is battling extinction, and scientists hoping to learn from its organ-regenerating abilities are worried for the bizarre-looking creature.

The axolotl salamander, dubbed the "water monster" by the Aztecs, has been reduced to living in what's left of Mexico City's ancient Xochimilco lake, which has gradually been drained over the centuries, the Agence France-Presse (AFP) reported.

But despite adapting to such a confined habitat, this water monster cannot adapt to the whopping 20 million people living in the region, some of whom use harmful pesticides near the lake's canals.

Based on this legendary animal's reproductive rate, you wouldn't think that it would be in trouble. Female salamanders can lay 1,500 eggs four times a year, and yet only 0.3 axolotls on average are found every square kilometer compared to 1,000 in 1996, according to a study by the National Autonomous University of Mexico (UNAM).

In an effort to boost population numbers, UNAM scientists are encouraging local farmers to help make the canals cleaner. So far they have convinced 10 farmers to stop using harmful pesticides and avoid growing non-native plants near the south side of the lake.

Also, so far researchers have successfully bred 100 salamanders in three experimental canals, however their locations are being kept secret to protect the well-being of the milky white amphibian.

Scientists are especially interested in the carnivorous creature and its survival, given that these guys can resist cancer and reproduce complex brain tissue.

Researchers have studied the salamander's cells in the hopes of understanding how to regenerate organs and body parts of people suffering from malformations or accidents, the AFP says.

Axolotls are not only valued for their regenerating potential, but also for their uniqueness. These salamanders have the rare trait of retaining its larval features throughout its adult life - a condition known as neoteny. They have a tadpole-like dorsal fin that runs the entire length of its body as well as feathery external gills sticking out from the back of its wide head, National Geographic describes.

Water monsters - running up to 12 inches long - live exclusively in water, only rarely emerging from the bottom of Xochimilco, which is why protecting what few are left is vital to their existence.