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Literal Meaning: Like a fish in the water
Metaphorical Meaning: A person is in a situation where he can make full use of his ability.
 
In the Three Kingdoms Period (220 AD – 265 AD), Cao Cao was very powerful in military. Liu Bei fought against him in vain. After being defeated, he sought refuge with his relative Liu Biao in Jingzhou (present Jingzhou City, Hubei Province) and stationed in Xinye (present Xinye County, Henan Province). Liu Bei was an ambitious man so he couldn't satisfy himself by just assisting Liu Biao. But he had only three famous generals: Guan Yu, Zhang Fei and Zhao Yun, as well an army with fewer than 1000 soldiers. Somebody told him that what he needed was a talent that can manage his army and regime. Xu Shu, a well-known counselor, recommended Zhuge Liang to him.
 
In order to persuade Zhuge to work for him, Liu Bei visited Zhuge's home three times. Seeing Liu's sincerity, Zhuge Liang agreed to work for him and told him a lot of ideas or philosophies of how to conquer and govern the whole country. He suggested Liu Bei to take Jingzhou as his base in the first step. Then he had the opportunity to fight against Cao Cao and Sun Quan (the emperor ruling South China at that time).
 
Liu Bei appreciated Zhuge Liang's suggestions a lot. He said gladly to his two sworn brothers Guan Yu and Zhang Fei: "Zhuge Liang is the person I need. I am so fortunate to get his service, just like a fish in water."
 
Now this idiom is used to describe that a person in a situation where he can make full use of his ability.
 
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