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.]
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