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Dissolving Aluminum chloride in water results in the formation of hydrochloric acid (HCl) and Aluminum hydroxide (Al(OH)3). HCl is a strong acid and dissociates completely in water, releasing H+ ions, thus lowering the pH of the solution. Al(OH)3 is a weak base and does not significantly affect the pH.
The reaction can be represented as:
AlCl3 + 3H2O → HCl + Al(OH)3