Water is capable of dissolving a variety of different substances, which is why it is such a good solvent. And, water is called the "universal solvent" because it dissolves more substances than any other liquid. This is important to every living thing on earth.
One other key property of water is that it is polar, which means one side of the molecule has a negative charge and the other side has a positive charge. Water's polarity is what makes many other substances attracted to the water molecule.