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Wild Paint Horse can be found east of Pell's Gate, over the bridge on the big plain on the left side of the path, as well as in the field next to Fort Alessia. At the latter, Wild Paint Horses can be seen alongside Wild Chestnut and Bay Horses.
The horses will always run away from the Hero, and cannot even be ridden if the Hero is able to catch up with them. This makes them largely pointless, although they can be used for shooting practice, since they are fast-moving targets.