Water has been discovered on the Moon with remote sensing methods. Read the press release Diviner results indicate presence of widespread ice on the Moon on the "Diviner" infrared instrument on the Lunar Reconnaissance Orbiter (LRO) spacecraft that is orbiting the Moon.
Independently, H2O was also found in the spectrum of a dust cloud created by that LCROSS probe fragment when it crashed into the Moon, and had the main LCROSS probe follow it, which analyzed the impact.
To my understanding, this was very solid evidence that there is some water in the high-latitude areas on the Moon.
What else is known about the polar ice on the Moon?
Have there been identified any ice deposits that are more distinct?
Say forming tiny ice caps on central peaks on certain craters on the moon, or at crater walls.
Or are there ice deposits covered under a well-insulating layer of "soil" and rubble (regolith), and dispersed in this regolith (kind of permafrost)? Or is it just crystal-water bound in minerals?
I can dig for science papers myself, but maybe someone has done this already and can recommend some good articles or new findings (e.g. fresh from the AGU 2011 conference).