1) QTPIE is a new charge model that accounts for polarization effects in molecular dynamics simulations through charge transfer and polarization-dependent interactions. 2) When implemented in the TIP3P water model (TIP3P/QTPIE), it correctly describes the dissociation of water molecules and predicts dipole moments in water chains better than previous charge equilibration methods. 3) However, TIP3P/QTPIE does not accurately capture polarizability, as it does not include out-of-plane polarizability and underestimates in-plane components.