Hematite, a ferric mineral with diagnostic features in the visible and infrared spectral range, has recently been discovered in the polar regions of the Moon by the Chandrayaan-1 Moon Mineralogy Mapper (M3). The oxygen involving the oxidization process producing lunar hematite is supposed to originate from the Earth’s upper atmosphere, and hematite with different ages may have preserved information on the oxygen evolution of the Earth’s atmosphere in the past billions of years. The discovery of lunar hematite may provide insight into the understanding of the oxidation products on the Moon and other airless bodies. In this work, we analyze hematite abundance distribution in the lunar polar regions, showing that the content of hematite on the lunar surface increases with latitude, and is positively correlated with surface water abundance. We suggest that the latitude dependence of hematite is derived from the latitude dependence of water, which indicates that water may play an essential role in the formation of hematite. The correlation between hematite and the optical maturity parameter (OMAT) was analyzed and a significant positive correlation was observed, which suggests that the hematite in the polar regions is the result of gradual and persistent oxidation reactions. In addition, based on the analysis of oxygen particles in the Earth wind, it was found that O+ and O2+ are much more abundant, suggesting that low-energy O+ or O2+ ions escaping from the upper atmosphere of the Earth may play a crucial role in the formation of hematite in the lunar polar regions.