The project team is developing a cloud-resolving Earth system model with the throughput necessary for multi-decade, coupled high resolution climate simulations, using a novel superparameterizaiton approach. This next-generation model has the potential to substantially reduce major systematic errors in precipitation found in current models because of its more realistic and explicit treatment of convective storms. Consequently, it will improve our ability to assess regional impacts of climate change on the water cycle that directly affect multiple sectors of the US and global economies, especially agriculture and energy production.