Software
Several options are available for fluid simulation in off-the-shelf 3D packages. A popular open source package is Blender 3D, with a stable Lattice Boltzmann method implemented. Another option is Glu3d, a plugin for 3ds Max very similar to Blender's fluid capability. Other options are RealFlow, FumeFx and AfterBurn for Max, Exotic Matter's Naiad, Dynamite for LightWave 3D, ICE SPH Fluids and Mootzoid's emFluid4 for Softimage; Turbulence.4D, PhyFluids3D, DPIT for Cinema 4D. Houdini and Maya support fluids natively. However Plugins can be bought to improve Simulations.
Read more about this topic: Fluid Simulation