I'm not trying to advertise another website, but there was a GREAT discussion about water on Mars at space.com forum before this photo. If you look at the large collection of pictures collected by the rovers, you'd notice that the rocks have many different kinds of imperfections and colors. Most of them are grooves, which possibly indicates water running over these rocks. I seriously doubt that sand, even blown at high speeds, could cut out water-like grooves.
Now with that photo in particular, I personally think that water may be collected in underground deposits. Much like our springs and geisers here on earth. There is a lot of water underground here, and if they have ice caps, weathered rocks, canyons, and the terrain is changing within a few years, I'd say that suggests that there may be some liquid water running occassionally.
Well I'm really not sure, but let's hope there is water still running under the surface! We know VERY little about Mars still, so we should not jump to any assumption - water or not. The only way to find out is explore!