It’s a false understanding. There is a belief that caffeine is a diuretic (i.e. it makes you pee more and dehydrates you), but it is at most a very mild one and studies show coffee drinkers are not more dehydrated after drinking coffee. What’s really going on is likely that coffee is bitter from compounds called tannins (they’re also in things like tea and red wine), which leaves the mouth feeling dry.
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