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Abstract We provide a complete local well-posedness theory inH^sbased Sobolev spaces for the free boundary incompressible Euler equations with zero surface tension on a connected fluid domain. Our well-posedness theory includes: (i) Local well-posedness in the Hadamard sense, i.e., local existence, uniqueness, and the first proof of continuous dependence on the data, all in low regularity Sobolev spaces; (ii) Enhanced uniqueness: Our uniqueness result holds at the level of the Lipschitz norm of the velocity and the$$C^{1,\frac{1}{2}}$$regularity of the free surface; (iii) Stability bounds: We construct a nonlinear functional which measures, in a suitable sense, the distance between two solutions (even when defined on different domains) and we show that this distance is propagated by the flow; (iv) Energy estimates: We prove refined, essentially scale invariant energy estimates for solutions, relying on a newly constructed family of elliptic estimates; (v) Continuation criterion: We give the first proof of a sharp continuation criterion in the physically relevant pointwise norms, at the level of scaling. In essence, we show that solutions can be continued as long as the velocity is in$$L_T^1W^{1,\infty}$$and the free surface is in$$L_T^1C^{1,\frac{1}{2}}$$, which is at the same level as the Beale-Kato-Majda criterion for the boundaryless case; (vi) A novel proof of the construction of regular solutions. Our entire approach is in the Eulerian framework and can be adapted to work in more general fluid domains.