?The bow wave breaking and the viscous interaction of stern wave are studied by simulating the free-surface flows. The Navier-Stokes equation is solved by a finite difference method in which the body-fitted coordinate system, the wall function and the triple-grid system are invoked. After validation, the calculations are extended to turbulent flows. The wave elevation at the Reynolds number of $10^4$ is much less than that at $10^6$ although the Froude number is the same. The numerical appearance of the sub-breaking waves is qualitatively supported by experimental observation. They are also applied to study the stern flow of S-103 for which extensive experimental data are available. Although the interaction between separation and the stern wave generation are not yet clear, the effects of the bow wave on the development of the boundary layer flows are concluded to be significant.