While a baby is in the womb, it is situated within the amniotic sac, a bag formed of two membranes (the amnion and the chorion) in which the fetus grows and develops. Inside the sac, the baby is surrounded by amniotic fluid.Amniotic fluid plays a very important role in the development of the baby. Initially, the fluid is comprised of water produced by the mother. It is soon entirely replaced by fetal urine (as it swallows and excretes the fluid), however, around 20 week's gestation. Amniotic fluid is not only comprised of urine, it also contains vital components such as nutrients, hormones, and infection-fighting antibodies. It also helps in insulating the baby and maintaining a regular temperature.
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