There is A Lot of Water on the Moon

Fuck yes.
http://www.nasawatch.com/archives/2009/09/there_is_a_lot.html

>Reliable sources report that there will be a press conference at NASA HQ at 2:00 pm this Thursday featuring lunar scientist Carle Pieters from Brown University.

>The topic of the press briefing will be a paper that will appear in this week's issue of Science magazine wherein results from the Moon Mineralogy Mapper (M3) aboard Chandrayaan-1 will be revealed.

>The take home message: there is a lot of water on the Moon.

This is going to make a permanent manned presence on the Moon that much easier.

Oxygen (and air pressure in general) has always been the bigger problem.

No, extracting oxygen from whatever water resources available is unlikely to be feasible.