Julyne Derrick at About Beauty says No - well not for good skin anyway.

Despite years of having this drummed into our heads, this is not
true. It is good to keep your body, including your skin, hydrated,
however the outermost layer of skin does not absorb water since it is
made up of dead skin cells. Moisture level of skin is not determined by
internal factors, but rather external ones, such as cold or hot air,
dry heat and by the number of oil-producing glands you have.

She recommends instead that if you want to hydrate your skin, exfoliate weekly to remove dead skin then apply a rich moisturiser
while skin is still damp.

Of course, drinking plenty of water is good for your body so we would always recommend drinking your 8 glasses of water a day.