How does water retention from increased sodium effect you?

Is it good for you.. or bad or neither or both. My diet has a lot of salt in it when i'm eating healthy to loose fat. These salts come from tuna, hot sauce, bran cereal, jalapenos, bread, and other such foods. So what if I retain water? Isn't water good for me... i'm fine with looking bloated if these foods help me loose fat and then after I have lost fat I can reduce a lot of the sodium in my diet. So what's the deal with water retention caused by sodium?