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The reduced hydration environment induced by disruption of epithelial barrier function after injury results in excessive scarring, but the underlying mechanisms are poorly understood. We demonstrated that exposing keratinocytes to a reduced hydration environment causes epithelial-to-mesenchymal transition (EMT) and induces caveolin-1-dependent downregulation of E-cadherin. Reduced caveolin-1 expression and increased Snail expression are associated with low expression levels of E-cadherin. Caveolin-1 downregulation increases the transcri