Yes you can drink too much water. At first you will notice lower back pain because your kidneys are trying to get rid of the extra water.
Sodium balance in the body is 0.9% salt = isotonic (balanced)
Too much water will dilute the sodium in the blood and it will be hypotonic - Less than 0.9%
Too little water and too much salt will result in a hypertonic - too much salt.
To learn more about osmosis go here:
http://www.tvdsb.on.ca/westmin/science/sbi3a1/Cells/Osmosis.htm