Hi Jim,
India stones are aluminum oxide, carborundum stones are silicon carbide. Arkansas stones are novaculite, a natural stone. All of these are used with oil as a lubricant.
Water stones are usually aluminum oxide also. They wear much quicker than most oil stones but as they wear fresh abrasive is exposed.
There's more info here:
http://www.antiquetools.com/sharp/sharphistory.html
http://www.knifecenter.com/knifecent.../instruct.html
http://www.norsewoodsmith.com/ww/oilstones/edges1.htm
http://www.norsewoodsmith.com/ww/oilstones/cleaning.htm
There's also a great post by Bob Smalser about using oilstones somewhere here but I can't find it right now.
HTH,
Maurice