Well-posedness of the free-surface incompressible Euler equations with   or without surface tension
  We provide a new method for treating free boundary problems in perfect fluids, and prove local-in-time well-posedness in Sobolev spaces for the free-surface incompressible 3D Euler equations with or without surface tension for arbitrary initial data, and without any irrotationality assumption on the fluid. This is a free boundary problem for the motion of an incompressible perfect liquid in vacuum, wherein the motion of the fluid interacts with the motion of the free-surface at highest-order. 
Daniel Coutand and Steve Shkoller