Those are two different kinds of hydrated.
Drinking water keeps you hydrated so that your organs and stuff can function effectively.
Keeping your skin specifically hydrated is a different story. Even if your body is perfectly hydrated and healthy, your skin can still release water and become dry. Lotion and moisturizers essentially “trap” the water in your skin, preventing it from escaping. This won’t prevent you from losing water via sweat or urine though, which means your skin can be hydrated while the rest of your body is dehydrated.
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