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But what is the physiological/biological reason for the cooter area (crotch, labia, lips, etc.) being darker than the rest of their flesh?



Yes...it becomes darker because as the woman gets sexually aroused, blood flow is increased to that area, thus the change in colour...it happens with all races.

Did you also know that this is the reason women wear lipstick too, i.e. to mimic the sexually aroused/engorged labia and suggest to the potential partner that they are ready for mating?