It removes certain types of impurities such as residue from medications, and organic impurities that cause that swampy smell that tanks sometimes get, or tea colored stains from driftwood. Most people agree that carbon is not needed all the time in a healthy aquarium, but only now and then for a specific need, like to remove meds after treatment, to remove the smell for a week or so when your mother-in-law is coming to visit, things like that. Carbon is said to remove some substances that live plants use, and there is an old word of mouth belief that carbon can sometimes leach the stuff it already absorbed back into the tank, but i don't really understand how that could happen and have never seen any proof. What is sure is that carbon has a very short effective life span, 1 or 2 weeks, and if you leave it in longer than that it basically becomes biomedia for all intents and purposes.