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From The Collaborative International Dictionary of English v.0.48:
Waler \Wal"er\, n. [From Wales, i.e., New South Wales.] A horse imported from New South Wales; also, any Australian horse. [Colloq.] --Kipling. Note: The term originated in India, whither many horses are exported from Australia (mostly from New South Wales), especially for the use of cavalry. [Webster 1913 Suppl.]