Knight vs. dragon

A dragon and knight live on an island. This island has seven poisoned wells, numbered 1 to 7. If you drink from a well, you can only save yourself by drinking from a higher numbered well. Well 7 is located at the top of a high mountain, so only the dragon can reach it. One day they decide that the island isn’t big enough for the two of them, and they have a duel. Each of them brings a glass of water to the duel, they exchange glasses, and drink. After the duel, the knight lives and the dragon dies. Why did the knight live? Why did the dragon die?