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The sub-grid-scale parameterization of clouds is one of the weakest aspects of weather and climate modeling today, and the explicit simulation of clouds will be one of the next major achievements in numerical weather prediction. Research cloud models have been in development over the last 45 years and they continue to be an important tool for in-vestigating clouds, cloud-systems, and other small-scale atmospheric dynamics. The lat-est generation are now being used for weather prediction. The Advanced Research WRF (ARW) model, representative of this generation and of a class of models using explicit time-splitting integration techniques to efficiently integrate the Euler equations, is de-scribed in this paper. It is the first fully compressible conservative-form nonhydrostatic atmospheric model suitable for both research and weather prediction applications. Re-sults are presented demonstrating its ability to resolve strongly-nonlinear small-scale phenomena, clouds, and cloud systems. Kinetic energy spectra and other statistics show that the model is simulating small scales in numerical weather prediction applications, while necessarily removing energy at the gridscale but minimizing artificial dissipation at the resolved scales. Filtering requirements for atmospheric models and filters used in the ARW model are discussed