Abstract
A canonical formalism in hydrodynamics is developed by aid of Clebsch's transformation. If we consider the adiabatic process where the entropy is conserved, vortex motion is found to be closely connected with the entropy. Euler's hydrodynamical equation emerges factorised into four fundamental equations which are discussed from the thermodynamical point of view. Many important relations in hydrodynamics are naturally introduced by these equations. Landau's theory of quantum hydrodynamics is criticized upon our theory.

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