Someone who is a 'dry arse' or 'dry' is someone who backs out of drinking alcohol for a reason which is not legitimate.
Person X: I'm goin to get so pissed tonight. Are you?
Person Y: No, i'm gonna stick to lemonade, I don't want to get drunk.
Person X: You fucking dry arse!

Here, person Y is being a dry arse because he/she is backing out of drinking alcohol.
by Jonny Lignier December 07, 2006

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