The testes of elephants are completely inside the body, situated close to the kidneys and protected against cold temperatures, for example in cold water. This is one of the important indications of a previous water-living phase in the evolutions of elephantine animals.
Roger W. Short writes: "The elephant embryo (like the dugong and manatee) has no gubernaculum, no processus vaginalis, no pampiniform plexus, no scrotum, and hence no means of effecting testicular descent".
Short, Roger W. 2005. "Why the elephant has intra-abdominal testes" (On-line), departmenet of obstretics and gynaecology, University of Melbourne, Royal womens hospital, 132 Grattan Street, Carlton 3053. Accessed 30 January 2005 at http://www.publish.csiro.au/?act=view_file&file_id=SRB03Ab59.pdf (pdf).