less muscle, less liquids?

i am a serious Cat 4/5 racer losing serious weight. before cycling i lifted a lot and therefore had a lot of muscle weight. i weighed 175 about 2 months ago and now im at 157. and yes, to the pain of many ears, it has been through the low-carb dieting. im estimating that 2/3 of my weight loss came from fat and the other 1/3 from muscle. i still have about 8-10 more pounds to go, and i think i can lose that by x-mas. i have been staying on the bike so that i would lose the least amount of muscle from my legs and back while "thinning out" my arms, chest, and back. it has worked. I know i have not lost any significant power (i have a powertap) becuase i took a couple days off from the diet and found my performance was very close to where it was before i started dieting.
SO! my questions is that when all of this is done, i will have little fat (acting as insulation) and only cycling-critical muscle. does this mean i wont need to drink as much?