Hi I am type 2 as well with average readings about 5.4. I often drink a lot when I dont feel well (not diabetes related), this is partly because the BG can go mental if you are feeling unwell. To keep lips a bit less dry I use one of the lip moisturisers such as lip butter. That really helps. The weather can also affect how much I drink even though my BG may be in what I call "my range" which is between 4.4 and 7.8. If I get a bit on the warm side I can drink as much as 6 litres of water in 24 hours but dont find its much to worry about as it only goes on for a day or 2.
During one of the thirsty spells I put a small amount of lemon juice in water (just enough to taste) and that often will take the edge off. Can be difficult though. Doesn't help when you have quite a few other problems as I do.