The converse appears to be true (lipolysis increases with hydration).

https://pubmed.ncbi.nlm.nih.gov/14681716/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4901052/

Breakdown products of fat are something like 16% water, but you also need enough water for hydrolysis of triglycerides to get lipolysis going.