This note describes a method used to simulate realistic fluid motion. The paper first describes the basic Navier-Stokes equation term by term, which is the accepted physical description of fluid motion. The introduction of discretized cube grids for simulation instead of particles and a Lagrangian simulation was a big change that became pretty standard now. Then the semi-Lagrangian/implicit method presented by Stam. It uses the "method of characteristics" that implicitly traces a line backwards along the current velocity field to find the new velocity. This gives stability that wasn't possible with explicit methods with large time steps.