1 a water spirit of Scottish folklore, typically taking the form of a horse and reputed to delight in the drowning of travelers.
2 a sheepdog of an Australian breed with a smooth coat, originally bred from a Scottish collie.
– ORIGIN late 17th century : perhaps from Scottish Gaeliccailpeach, colpach‘bullock, colt’. kelpie (SENSE 2) apparently comes from the name of a particular bitch, King's Kelpie (c.1879).