  We discuss early results from the first large N-body/hydrodynamical
simulation to resolve the formation of galaxies in a cold dark matter universe.
The simulation follows the formation of galaxies by gas cooling within dark
halos of mass a few times $10^{11}\Msun$ and above, in a flat universe with a
positive cosmological constant. Over 2200 galaxies form in our simulated volume
of $(100 \Mpc)^3$. Assigning luminosities to the model galaxies using a
spectral population synthesis model results in a K-band luminosity function in
excellent agreement with observations. The two-point correlation function of
galaxies in the simulation evolves very little since $z=3$ and has a shape
close to a power-law over four orders of magnitude in amplitude. At the present
day, the galaxy correlation function in the simulation is antibiased relative
to the mass on small scales and unbiased on large scales. It provides a
reasonable match to observations.
