How much water-Diabetes?

I have a question about how much water he needs. I took him to my parents' home over the holidays and they were astonished about how much water he drinks. Our family Maltese (who is almost three years old) does not drink half as much as the new four-month old puppy drinks in a day. I have noticed that my puppy drinks alot of water but I have just assumed that it is due to the fact that he is a growing, happy and active puppy. My parents, on the otherhand, thought it is quite unusual and thinks that might be a clue as to why he urinates so much (true!) and they think I should limit his access to water. I am not sure if that is the right move though...I have seen about four different veternarians over the past three years and they have all told me that a dog must always have fresh, clean water at hand at all times. When my first Maltese was a puppy, he was hospitalized for dehydration as a result of not having access to water for too long a period. This new puppy was demanding water so badly (he would hit the dish whenever it was empty) that I went out and bought him one of those gallon size water reservoirs. I fill that thing every five to seven days. Should I consider limiting his water intake?

This next question may also be ridiculous: My dad is a diabetic and he has suggested getting the puppy's blood sugar tested since that over-excessive thirst was a clue to his diagnosis of diabetes. Sounds a little crazy, but prompts me to ask, can dogs suffer from diabetes?

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