Post some pics of your setup. A picture is worth a thousand words. As far as size goes here's my enclosure for a 9 1/2 month old male and a 6 month old female.

You don't have to go this big but size is a MAJOR factor in nose rubbing. Stress is another factor. Stress can be caused by inadequate husbandry(poor heating, lighting etc.), disease, being in high traffic areas etc.
"Water dragons need height, since they are climbers, but they also need length. Provide branches to climb on (soak in weak bleach solution to kill parasites first, rinse well, and let dry), plants, basking areas, hiding areas, and ideally if you can make at least 1/3 of the ground area water.
Water Dragons need a space at least 2 x their total length therefore you will eventually need to provide an enclosure that is a min. of 6 ft long (side to side), 2-3 feet deep and 4-6 feet high to do it right." -Tricia Powers
Visit
Care of The Chinese Water Dragon lizard (enclosure, diet, health, illness, temp, heat, humidity, cage, vivarium, terrarium). You'll find pretty much everything you need to know about dragons. Good luck!