Abstract: A retractable drinking bottle includes a reel, and a cord which ties a bottle to the reel. In the retracted position the bottle is placed side-by-side to the reel housing, and when the user desires to take a drink the bottle is grasped and pulled away from the reel. Thereafter, the bottle is retractable back to the reel. The reel preferably includes a housing that contains a retraction mechanism and a spool upon which a flexible line is wound. The preferred housing also includes a clip for attaching the reel to the user's clothing or to a vehicle such as a bicycle. An elastic cord is releasable attached to the end of the reel line, and the cord is formed into a loop. The bottle includes indentations sized to be received inside the loop of the cord. The bottle is also formed such that in the retracted position it nests inside the reel housing. The bottle is retractable to the holder after taking a drink, and the bottle is retained by the holder and cannot be dropped.