Nobody in Sandpoint truly knows where Arnnak came from, who he really is or how he earned his title of "Rusted". When Ameiko returned home from her stint as an adventurer, Arnnak was closely in tow, following her constantly and ever vigilant for anything he perceived as a "threat" to Ameiko. She has never mentioned where Arnnak came from or how she met him, save for letting slip (under a little intoxicating influence) that Arnnak supposedly saved her life shortly before she decided to return home. Rumors persist to this day that Ameiko's tavern, Rusty Dragon, got its name from Arnnak himself, though she has fervently denied this tale time and again.
Arnnak, however, claims the exact opposite: Ameiko was the one to save his life and in return, he has vowed to keep her safe from all danger as her personal guardian spirit. He claims that he met Ameiko and his "draconic heritage" awakened within him, demanding that he serve her diligently and faithfully as her family "kirin", or guardian spirit. Although Ameiko has denied that Arnnak has ever owed her any sort debt, she permits him to stick around and help out at the Rusty Dragon as both a server and mascot, saying that having a real "dragon" serving at the Rusty Dragon makes for good word of mouth.
Regardless of how to pair met, Arnnak has been a fairly iconic piece of Sandpoint since Ameiko's return, and many citizens see him as a somewhat overzealous, but undeniably lovable mascot for both the tavern and town. Arnnak never strays far from Ameiko's side, and during the Late Unpleasantness, he demonstrated a remarkable ability to channel the might of his draconic cousins as a weapon, wielding it effectively to keep goblins, bandits and other dangerous creatures out of Sandpoint.