It’s a great idea to drink plenty of water for your overall health, and normal hydration doesn’t directly affect the levels of hCG that your body produces. HCG is produced by your placenta (the new organ your body grows during pregnancy to support your baby), and the amount of water you drink doesn’t impact this. However, the amount of water in your urine can affect pregnancy tests. This is because water in your urine can dilute the hCG and could lead to a false negative pregnancy test. Typically, the test is most accurate if completed first thing in the morning.