If these volatile organic compounds are being produced all the time, you might wonder why wet dog smells so much worse than a dry dog. Water itself has a hand in this; it helps to break down the micro-excreta of the bacteria and yeast in the dog’s hair. As the water evaporates from the dog’s hair, it can carry with it some of the volatile compounds, allowing them to reach your nose. As the water evaporates, it also increases the humidity of the air surrounding the dog, and as humid air is able to accommodate a higher concentration of smelly molecules, the effect is further intensified.