A developer on Nvidia's PhysX team has released demo videos demonstrating a new way to realistically render water and other fluids in real time.
Accurately modeling water has been notoriously difficult even with modern physics and graphics engines, but the "Position Based Fluids" method presented on the blog of PhysX programmer Miles Macklin is tremendously convincing.
According to the above video, these tests were run on an Nvidia GTX 680 graphics card.
The PhysX paper on Position Based Fluids has been accepted for presentation at SIGGRAPH (Special Interest Group on GRAPHics and Interactive Techniques) 2013. The submission video can be seen below.