Very interesting. Though I don't see why the water would be broken down for fuel, when fuel would presumably be much easier to come by than water itself. Also, correct me if I'm wrong, but isn't water a by-product of hydrogen fuel?
This offers the potential for bases at the polar regions. I personally hope that something like this happens within my lifetime.
Do you know what rocket fuel is? Well Hydrogen and Oxygen is one of the most common ones. Now where do you think you get that from? You aren't going to find a rocket fuel mine on the moon.