Preliminary results of a short climate simulation with a 2-D cloud resolving model (CRM) installed into each grid column of an NCAR Community Climate System Model (CCSM) are presented. The CRM replaces the conventional convective and stratiform cloud parameterizations, and allows for explicit computation of the global cloud fraction distribution for radiation computations. The extreme computational cost of the combined CCSM/CRM model has thus far limited us to a two-month long climate simulation (December--January) using 2.8¿¿2.8¿ resolution. The simulated geographical distributions of the total rainfall, precipitable water, cloud cover, and Earth radiation budget, for the month of January, look very reasonable. ¿ 2001 American Geophysical Union