How do you know that she doesn't drink enough fluids? Does she say she's thirsty but then not drink? What does "doesn't pee much" mean, and what is her pee like when she does pee?
As the PP says, dry skin has nothing to do with drinking enough water, and the 8-glasses-of-water-a-day business is also a myth:
http://www.scientificamerican.com/article/eight-glasses-water-per-day/