Coffee, etc., do not dehydrate you.

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The Straight Talk
In his review, "Caffeine, Body Fluid-Electrolyte Balance, and Exercise Performance," Lawrence E. Armstrong, a professor of exercise physiology at the University of Connecticut disproves the notion that caffeinated beverages rob us of our precious fluids. By reviewing the scientific research on the subject, he concludes that although caffeine, like water, is a mild diuresis (it increases excretion of urine), moderate caffeine consumption does not produce a "fluid-electrolyte imbalance" that can affect health or exercise performance. Furthermore, we retain roughly the same amount of fluid after drinking a caffeinated beverage as we do after drinking water.

Even more encouraging for habitual coffee consumers is the finding that those with caffeine tolerance have reduced likelihood that a fluid electrolyte imbalance will occur. The more regular your caffeine habit, the more fluid your body is conditioned to retain.

Other findings support his conclusions. A small study done at the University of Nebraska tested the body weight, urine output, and blood of eighteen subjects after they consumed caffeinated and non-caffeinated beverages. They determined that there was "no significant differences in the effect of various combinations of beverages on hydration status of healthy adult males." The Institute of Medicine expert panel on water and electrolyte intake asserts that the diuretic effects of caffeine are transient, and that coffee, tea, and colas can contribute to total water intake.