Mushrooms do not have a layer of skin that helps keep in moisture. So they do need a good amount of water to grow. Generally they grow naturally in high moisture areas, although an overabundance of water can also kill them.
Mushrooms, a fungi, need high levels of moisture in order to grow. This is why things that are in cold damp areas, typically, see higher levels of mushroom growth and well as the appearance of other mold. Mushrooms have even been found to grow underwater!
photo credit: http://www.cryptomundo.com/cryptozoo-news/uw-mushrm/
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