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Diabetes can affect every part of the body, including the skin. As many as 1/3 of people with diabetes will have a skin disorder caused or affected by diabetes at some time in their lives. When sugar is high, the body loses fluid, causing your skin to become dry. This occurs because the body is turning the water into urine to remove the excess sugar from the blood. Your skin can also get dry if the nerves, especially those in your legs and feet, do not get the message to sweat (because of diabetic neuropathy).