Abstract A formal framework is established for the way in which cloud-resolving numerical models are used to investigate the role of precipitating cloud systems in climate and weather forecasting models. Emphasis is on models with periodic lateral boundary conditions that eliminate unrealistic numerically generated circulations caused by open boundary conditions in long-term simulations. Defined in this formalism is the concept of large-scale forcing and the cloud-environment interactions that are consistent with the periodic boundary conditions. Two-dimensional numerical simulations of the evolution of cloud systems during 1–7 September 1974 in Phase III of the Global Atmospheric Research Program Atlantic Tropical Experiment (GATE) are conducted. Based on the above formalism, a simple technique is used to force an anelastic cloud-resolving model with evolving large-scale horizontal wind field and large-scale forcing for the temperature and moisture obtained from the GATE data. The 7-day period selected i...