Answer:
A decrease in entropy is balanced by a large increase in the entropy of the surrounding water molecules.
Explanation:
Water's ability to dissolve a wide variety of molecules is important, but more important is the hydrophobic effect, which drives the aggregation of hydrophobic molecules and plays a role in the folding of proteins and formation of lipid-bilayers.
Entropy is a measure of disorder of a system. Forcing water to be ordered decreases entropy, a very unfavorable situation. Water has the ability to force hydrophobic molecules away causing their aggregation. Water gains entropy when the fatty acids (hydrophobic) are forced into the lipid-bilayer. Thus, a decrease in entropy is balanced by a large increase in the entropy of the surrounding water molecules.
