Is Water Good or Bad for Dry Skin?

You would think that putting water on the skin would moisturize it more, but the opposite is true. Plain water that comes in contact with skin evaporates and takes with it many of the skin's natural oils called natural moisturizing factor (NMF). The more frequently that skin comes into contact with water, the drier it gets -- unless those natural oils are replaced. Since you have to use water for bathing, how do you do so without drying out the skin?