Every cell in your body contains water.
A lot of stuff your body needs is water soluble. Stuff gets transported from A to B. Into cells, out of cells.
Blood is used to transport oxygen (and other stuff) through your entire body.
But the body isn’t a closed loop: you constantly loose water:
Some stuff you don’t need or could be harmful in larger concentration gets filtered out (->kidneys) and exits the body with your urine.
Too cool itself, the body sweats. It evaporates, which cools you down.
That looses water, which you need to replenish.
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