From Science:
Yes, the moon is a “wetter” place than the Apollo astronauts ever could have imagined, but don't break out the beach gear just yet. Although three independent groups today announced the detection of water on the lunar surface, their find is at most a part per 1000 water in the outermost millimeter or two of still very dry lunar rock. The discovery has potential, though. Future astronauts might conceivably wring enough water from not-completely-desiccated lunar “soil” to drink or even to fuel their rockets. Equally enticing, the water seems to be on its way to the poles, where it could be pumping up subsurface ice deposits that would be a real water bonanza.
A less dry moon makes its debut courtesy of the Moon Mineralogy Mapper (M3) that has been orbiting the moon onboard India's now-defunct Chandrayaan-1 spacecraft. A spectrometer, M3 detected an infrared absorption at a wavelength of 3.0 micrometers that only water or hydroxyl–a hydrogen and an oxygen bound together–could have created.
More here.