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Incompressible fluids are an abundant source of mathematical and practical problems. The question of global-in-time regularity versus finite-time singularity formation for incompressible fluids, governed by the Navier-Stokes or Euler equations, has been one of the most challenging outstanding problems in applied PDE. There have also been new developments in the study of the onset of turbulence due to linear and nonlinear instabilities in incompressible fluids. Interfacial and surface water waves are physical phenomena that, in addition to the challenges outlined above, involve the evolution of free boundaries. These problems embody many of the mathematical challenges found in studies of nonlinear PDEs.