Dilutional hyponatremia is common in cirrhosis patients with ascites, occurring in 30-60% of cases. It involves reduced ability to excrete water due to impaired kidney function and excess arginine vasopressin. Fluid restriction can prevent worsening hyponatremia but not increase sodium levels. New drugs that block vasopressin's effects, called V2 receptor antagonists, increase water excretion and serum sodium without electrolyte or blood pressure changes. Studies in animals and healthy humans show promise for V2 antagonists in treating hyponatremia in cirrhosis patients.