For that kind of rash my first thought is either friction or sensitivities (either to detergent or food). Does it consistently go *completely* away with bare butt time?
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Ds had a rash (or eczema) in his diaper area too. It was between his penis and belly button, and always started in the same spot. Sometimes it spread more or looked worse. It did seem slightly better (but never went away)Â when we started changing immediately after he peed or had bare butt days, but it was pretty clear that it wasn't caused by the diapers. His doc said there was no way it could be caused by food, but the pattern with sweet potato was pretty clear (in hindsight).
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The few times it got really bad we traced back to sweet potato in our food diary (we later had him tested for IgG sensitivities, and sweet potato was a positive).
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It still persisted at a milder level, and it actually went away completely a month or so after we stopped ED'ing and started consuming a wide variety of foods. That was summer-time perhaps. Now he has eczema on him bum cheeks, and inner elbows, and has watery/mucousy poop. I think I have a good list going of possible suspects, and I think I've removed the poop culprit. Still, I admit it's possible that it's not food related or that it's nutrition related.
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Frequent waking can be food related too.