Osmoreceptors are located in the brain, within they posterior pituitary of the hypothalamus.Osmoreceptors shrink in response to reduced water in the blood due to movement of water from the osmoreceptor into the blood.In response, the pituitary secretes ADH (anti diuretic hormone).ADH signals to the kidney to increase permeability and re-uptake of water from the kidney (distal tubule/collecting duct) into the blood by osmosis.