Source: Variety

According to Variety, Walden Media, Beacon Pictures and Revolution Studios are teaming to produce a "Narnia"-scale pic based on children's fantasy novel The Water Horse, by British author Dick King-Smith.

Robert Nelson Jacobs will pen the live-action/CGI pic and Jay Russell will direct. Production is expected to begin in May in New Zealand.

The Water Horse tells the story of a lonely boy in Scotland who finds a mysterious egg from which hatches a "water horse" -- a mythical sea monster of Scottish legend.

F/x will be done by Weta Digital and Weta Workshop, which most recently created the visual effects in "King Kong." Weta also worked on Walden's "The Chronicles of Narnia: The Lion, the Witch and the Wardrobe," which was produced in association with Disney.