The term CORAL REEF DWELLERS can be summarized as aquatic creatures that inhabit coral reefs. One example of a coral reef dweller is the eel, which is a four-letter word. Eels are elongated fish that live in both salt and fresh water habitats. They are carnivorous and feed on smaller fish, crustaceans, and mollusks. Eels have a slimy skin and can range in size from a few inches to several feet long.