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Dry saunas work in much the same way as wet saunas, but with one major difference: they don't use steam.
In dry saunas, a stove (just as with a wet sauna) is used to heat the air in the sauna. The stove can be electric, gas, or wood, and usually has rocks on it that heat up as well. Whereas in a wet sauna, water is poured on the rocks to produce steam, in a dry sauna, little or no water is used and the air is heated only by the stove and the rocks.
Temperatures in a dry sauna can approach 200 degrees Fahrenheit, but because it is a “dry heat,” the temperature is tolerable to the bathers. Just like a hot day in the American Southwest (with temperatures up to 114 degrees, but with no humidity) feels cooler than a hot day in the American South (with temperatures only around 85 or 90 degrees, with 20-30% humidity), a dry sauna can actually feel cooler than a wet sauna even though it has a higher temperature.