You can improve the overall quality of your fluid effect, such as making the draw smoother and with less banding, by turning on
Float Point Render Target in the
Viewport 2.0 options. To do this:
In the panel menu, select
Render > Viewport 2.0 >
.
The
Hardware Renderer 2.0 Settings window appears.
In the
Hardware Renderer 2.0 Settings window, select
Common Options > Floating Point Render Target > Enable.