So what in the world is an Axolotl!? 

 

An axolotl is a type of neotenic salamander, and that means they do not morph into terrestrial salamanders! In certain instances, they have morphed but it is uncommon. 

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The Axolotls we see today in the pet trade are not full-blooded Mexican salamanders, they have been crossed (many many generations ago) with the Tiger salamander. 

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The Axolotl is also known as a Mexican salamander (Ambystoma Mexicanum) or a Mexican walking fish. Although the axolotl is known as a "walking fish", it is not a fish, but an amphibian. The species originates from numerous lakes underlying Mexico City. Axolotls are unusual among amphibians in that they reach adulthood without undergoing metamorphosis. The axolotl remains in the larvae state their entire life. Though it develops functional lungs, it uses its fancy, feathery gills to breathe underwater. Like young salamanders, they retain external gills, a tail, a body fin, and lack moveable eyelids their entire life. Axolotls becoming a terrestrial animal is very rare and is due to either poor water quality and/or genetics. 
As of 2010, wild axolotls were near extinction due to urbanization in Mexico City and consequent water pollution.