So, as far as polarization goes, basically, electrons tend to gather around certain parts of a molecule, and cause that side of a molecule to become charged. If we think about water, we have the Oxygen Molecule, and two close hydrogen molecules. The electrons orbiting the molecule are going to tend to stay away from the close hydrogen protons because they have a positive charge. This means, because the H protons push them away, they 'collect' on the back side of the Oxygen atom and cause that side to be negative. Because all these electrons are hanging out on the back side of oxygen, creating a negative charge, there's nothing to negate the hydrogen protons, so the close hydrogen atoms have a positive charge. Lost yet?
Now that we know water has a + side and a - side, it can work as a magnet. It has two 'poles', making it POLAR!
So, the negative end of water (on the oxygen) can be attracted to a positive H proton on another water molecule, resulting in something called a DIPOLE-DIPOLE bond. Basically, one DIPOLE (water ~ a molecule with two poles) attracts another DIPOLE and forms bonds between molecules.
Here's a link to illustrate:
http://www.cfwep.org/education/smsp/images/module04/water_polarity04.jpg