If it's pressure, why did the water bore thru solid rock (which is the foundation of teh city - you can see it by circling the circumference of the town on foot), and not emerge somewhere in the lower tundra?
Water most certainly can cut through rock, this is how Niagara falls was created, by an ancient river cutting through bedrock 10's of thousands of years ago. Also, the Grand canyon in the US was formed by an ancient river many,many,many years ago, you can see the erosion lines through out the canyon walls. Glaciers will also cause water to cut through rock due to the immense pressure caused by the glacier pushing down on the water flowing under it. This in it's self can create some amazing " weird" water sources, there is a pond called "dead man's pond" here home that was created when glaciers covered Canada which is very,very deep but it sits atop a rather large hill ( some may call it a small mountain ).
IMO Skyrim's land scape looks to have been shaped by glaciers, which leads me to believe that glaciers would be responsible for creating an esker or a glacial pond/lake under Dragon's reach. Or it could have been natural under ground springs, or rivers that where exposed by a passing glacier and was covered back over by glacial deposits, you would be surprised the amazing thing nature is capable of creating.