The dominant paradigm since the Apollo Missions was that the Moon was as dry as a bone.
However, a paper was put out recently (before the discovery of water a month ago) proposing a model for water and other volatiles venting out of the interior of the Moon. One of the predictions of this model is that there should be significant subsurface water primarily near the poles. The results from Chandrayaan-1 and LCROSS today confirms that this is true--there is significant subsurface water near the poles. The claims that the water is solely on the surface and due to cometary deposition or solar wind interactions are now blown "out of the water".
This model predicts a lot more water under the surface for potential use in human exploration. w00t!
Check out the paper here: http://xxx.lanl.gov/abs/0909.3832