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Alcohol dilates peripheral blood vessels, but has been known to actually. constrict some blood vessels in the brain, lowering the oxygen content. Alcohol dilates peripheral blood vessels, but has been known to actually  constrict some blood vessels in the brain, lowering the oxygen content.
Alcohol dilutes the blood and thus enables increased urine output. Alcohol receptors in the liver sense its presence and trigger a biochemical pathway that increases urine output to rid the body of alcohol. Alcohol inhibits the release of ADH and thus urine output is increased.