Blender wizard CGMatter recently showcased a new setup, this time draining a wet towel. The inspiration for this one apparently came from when the artist was sick and used a wet cloth on his forehead to help reduce the temperature.
Now, you can recreate the motion of twisted fabric with water that knows where to flow out. CGMatter will walk you through creating the cloth, twisting it, and applying math to calculate the strain and much more to accurately emit fluid from the fabric: