Christina801: Yes, all living things do need water, but they don't necessarily need to drink as such. Many smaller animals (and of course animals in dry places) rarely encounter liquid water.
These can often get enough water from juices in their food, but they can also get "metabolic water" from very dry food. This is because water is one of the things produced when sugars or fats in the food are combined with oxygen from the air (this is respiration, which also produces carbon dioxide and energy). Metabolic water can be enough for some animals.