In the present numerical simulation of viscous free surface flow around a ship, two-fluids in-compressible Reynolds-averaged Navier-Stokes equations with the standard $ extsc{k}-varepsilon$turbulence model are discretized on a regular grid by using a finite volume method. A local level-set method is introduced for capturing the free surface movement and the influence of the viscous layer and dynamic boundary condition of the free surface are implicitly considered. Partial differential equations in the level-set method are discretized with second order ENO scheme and explicit Euler scheme in the space and time integration, respectively. The computational results for the Series-60 model with $C_B=0.6$ show a good agreement with the experimental data, but more validation studies for commercial complicated hull forms are necessary.