my 3 year old has had this problem for sometime. I thought once he was out of diapers it would finally heal, but he is completely toilet trained now and he still has issues. Only surrounding the anus he has red, sometimes raised skin that is very dry and flakes. The Ped. dr. I took him to 4 weeks ago said it was not a fungus cuz she swabbed for that. I have been checking him after each bowel movement to be sure it s kept clean. What seems to be helping the most is switching to dove bar soap and putting an organic all natural moisturizer on it that does not contain any alcohol and is full of essential fatty acides-(I use this same lotion on my face to rid me of eczema flair ups). The problem gets pretty good, but does not totally clear. When it s at it s best the skin around the anus is still discolored..but not as red, raised or flaky..The Pediatrician said she never saw something like this just localized around the anus...??? I m wondering what this could be? Is it a psoriasis?