Nightpool

Dragonbards Trilogy, Book 1. As dark raiders invade the world of Tirror, a singing dragon awakens from her long slumber, searching for the human who can vanquish the forces of evil—Tebriel, son of the murdered king. Teb has found refuge in Nightpool, a colony of talking otters. But a creature of the Dark is also seeking him, and the battle to which he is drawn will decide Tirror's future.

From the reviews:

"Scenes that fairly soar infuse the tale with mythical qualities, which are buttressed by vitalized characterizations (the otters, foxes and dragons as well as Teb are developed in loving detail while the evil ones are truly evil). An enthralling fantasy that begs a sequel, better yet a series of sequels." —ALA Booklist

"A sense that communication with animals once existed but has been lost permeates all of human lore. Georgia writer Shirley Rousseau Murphy's forte is her ability to vicariously compensate for this loss through her stories. In Nightpool she is in top form." —Atlanta Journal and Constitution