It
has also been suggested that Mars had an
early atmosphere -- around 4 billion years ago --
that was 100 times more massive than its
present atmosphere. This early, massive
atmosphere could have been entirely driven
off through multiple collisions of asteroids
onto Mars.
From Melosh and Vickery 1989 -- http://cmex-www.arc.nasa.gov/CMEX/data/FrontPg/Missions/SamRet/Haberle/RMH_Abs.htm
However, some recent thoughts suggest that Mars' liquid
water had to have existed within the last 1 billion years.
This evidence includes the smoothness of the
northern plains as well as the lack of craters
there.
Some MGS images imply very recent liquid water
flow (or seepage).