Basically, the more reactive Aluminium is happy to shed it electrons into the water, and the less reactive copper is equally happy to eat them up.
It's not that simple either, the electrons 'dissolve' (more on this later) to form Ionised water (ah-ha I hear you cry... this is why we use 'de-ionised' water) this Ionised water then flows round the loop and woop! meets the copper, the copper reacts, bonding to this happy extra electron like an old chum, and floating off... bingo! you've lost some of your copper waterblock (corrosion)...
Meanwhile, at the Aluminium block, electrons are still being pulled off by oxidising the Aluminium to alumium oxide (oxygen comes from the water) and releasing Hydrogen (which will form as bubbles on the surface of the block)... Hence you get a not-very-thermally-conductive layer on that Block/res made from AlO (ALuminium Oxide) and Hydrogen bubbles.
AND if that isn't enough, all these flowing electrons means that there's an electrical current flowing through your loop... it won't affect much, but it'll build up over time and what if it adds that extra deadly 0.01V to the wrong leg on one of your volt reg's and suddenly you've got a Vcore of 12...
(it'll run.... all over the motherboard)
THAT's why you avoid mixing metals, and why Aluminium isn't a very good metal for water loops, unless you have anti-corrosion additives.
And to think i dropped Chemistry...
Hope that clears things up...
Mike