We have developed a modified version of IMPACT which calculates atomic polarizabilities andtheir associated energies and forces. We have ported the methodology to the CM-5 and carried out calculations on systems of physical interest, for example development and testing of an anisotropic polarizable model for water. We have evaluated the computational requirements for generating accurate results with polarizable potentials. We are continuing to work on improving the algorithms and potential functions as well as the efficiency of parallelization of the code.