The multipoles as well as polarizabilities are obtained from ab initio calculations of an isolated molecule. The electrostatics are then treated rigorously so the potential function is transferable to various environments, such as clusters and condensed phases. This approach has previously been developed and used to produce an accurate, transferable intermolecular potential function for H 2 O. Recently, some of us have used this polarizable SCME potential function in a hybrid DFT/SCME scheme where part of the simulated system is treated using density functional theory (DFT) calculations while another part is described using the SCME potential function. The electrostatics of each part is taken into account in the calculations of the other and a coupled self-consistency iteration is used to determine the state of the system. This DFT/SCME scheme can be used to e ciently simulate solvated complexes and electrochemical systems.