It is narrated from Sayyiduna Abdullah bin Abbas (may Allah be pleased with them both) that a sheep belonging to the Mother of the Believers, Sayyidah Sawdah bint Zam'ah (may Allah be pleased with her), died. She said: O Messenger of Allah (peace and blessings be upon him), so-and-so's sheep has died. The Messenger of Allah (peace and blessings be upon him) said to her: "Why did you not take its skin?" She said: (Should we take) the skin of a sheep that has died? The Messenger of Allah (peace and blessings be upon him) said: "Allah Almighty has said: 'Say: I do not find, in what has been revealed to me, anything forbidden to one who would eat it, unless it be a carcass, or blood poured forth, or the flesh of swine' [Surah al-An'am: 145]. You do not eat it; you tan it and derive benefit from it." So she sent someone to it, who skinned it, and she tanned it and made a waterskin from it, until it wore out while with her.
Hadith Referenceالسنن الكبرى للبيهقي / كتاب الطهارة / 56