Capillary action occurs because water is sticky, thanks to the forces of cohesion (water molecules like to stay close together) and adhesion (water molecules are attracted and stick to other substances). Adhesion of water to the walls of a vessel will cause an upward force on the liquid at the edges and result in a meniscus which turns upward. The surface tension acts to hold the surface intact. Capillary action occurs when the adhesion to the walls is stronger than the cohesive forces between the liquid molecules. The height to which capillary action will take water in a uniform circular tube (picture to right) is limited by surface tension and, of course, gravity.
Not only does water tend to stick together in a drop, it sticks to glass, cloth, organic tissues, soil, and, luckily, to the fibers in a paper towel. Dip a paper towel into a glass of water and the water will "climb" onto the paper towel. In fact, it will keep going up the towel until the pull of gravity is too much for it to overcome.
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