This is a concept character piece of one the citizens of Innsmouth. From H.P. Lovecraft's Shadow over Innsmouth. They are suppose to have large unblinking eyes almost completely round, gills forming along the side of their necks, web toes/finger and similar mutations. They are suppose to be very clumsy as well depending on their state of mutation.
Imagination is not a total internal power but rather it is a reflection and multi-faceted projection of our experiences and knowledge. We take in information from the world around us and intuitively re-order it into something new. Something is not created from nothing but simply transformed from what was before.