Water intake

So I've decided to try and be a bit more healthy. I live in AZ so naturally I drink a lot of water, but now that I track everything, I realize I'm drinking minimum 96oz of water a day, not including what I drink in the night. Is that too much water? I'm currently 173lbs trying to drop to 120/130. Besides water, I'm not really sure what else I can drink while counting calories. My husband mentioned water intoxication the other day. Looking it up it says if you drink 27oz+ per hour. Now I definitely dont do that, it takes me a few hours to drink 32oz because I'm a sipper not a chugger lol.

Any advice would be appreciated!