A lot of Mars surface is frozen mud, and deeper underground it's liquid water.
Furthermore, we know that much of that water remains on that planet today as ice or frozen mud, with the soil of continent-sized regions of the planet assessed as being more than 60% water by weight. Not only that, scientists have discovered that Mars has liquid water, not on the surface, but underground, where geothermal heating has warmed it to create environments capable of providing a home for life on Mars today.
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We have found places where water flowed out of the underground water table and down the slopes of craters within the past 10 years. Indeed, we have detected methane emissions characteristic of subterranean microbial life emerging from vents in the Martian surface. These are either the signatures of Martian life or the proof of subsurface hydrothermal environments fully suitable for life.
http://articles.cnn.com/2011-06-29/opinion/zubrin.mars_1_martian-life-martian-surface-red-planet