Dropsy is not a disease, it's a name for a fishes shape, and is an abnormal accumulation of fluid beneath the skin, or in one or more cavities of the body. The fish presents as generally swollen with scales standing out from the body Commonly called pine-cone effect). 
Dropsy is fairly easy to diagnose non-specifically, however, it is much harder to diagnose the cause. The main cause is bacterial infection. The causative agent may be introduced through food or dirty water. They have mainly a mixed bacterial infection (aeromonas hydrophila and mycobacteriosis). Aeromonas (a genus of pathogenic rod-shaped gram-negative bacteria (schizomycetes) found in fresh and salt water, soil, and sewage) enter the body through intestines in the winter or spring and through ulcers, heron or parasites wounds.