For small displacement hulls, such as sailboats or rowboats, wave-making resistance is the major source of the marine vessel drag.
A salient property of water waves is dispersiveness; i.e., the greater the wavelength, the faster it moves. Waves generated by a ship are affected by her geometry and speed, and most of the energy given by the ship for making waves is transferred to water through the bow and stern parts. Simply speaking, these two wave systems, i.e., bow and stern waves, interact with each other, and the resulting waves are responsible for the resistance.  If the resulting wave is large, it carries much energy away from the ship, delivering it to the shore or wherever else the wave ends up or just dissipating it in the water, and that energy must be supplied by the ship's propulsion (or momentum), so that the ship experiences it as drag.  Conversely, if the resulting wave is small, the drag experienced is small.
The amount and direction (additive or subtractive) of the interference depends upon the phase difference between the bow and stern waves (which have the same wavelength and phase speed), and that is a function of the length of the ship at the waterline.  For a given ship speed, the phase difference between the bow wave and stern wave is proportional to the length of the ship at the waterline.  For example, if the ship takes three seconds to travel its own length, then at some point the ship passes, a stern wave is initiated three seconds after a bow wave, which implies a specific phase difference between those two waves.  Thus, the waterline length of the ship directly affects the magnitude of the wave-making resistance.
For a given waterline length, the phase difference depends upon the phase speed and wavelength of the waves, and those depend directly upon the speed of the ship.  For a deepwater wave, the phase speed is the same as the propagation speed and is proportional to the square root of the wavelength.  That wavelength is dependent upon the speed of the ship.  
Thus, the magnitude of the wave-making resistance is a function of the speed of the ship in relation to its length at the waterline.
A simple way of considering wave-making resistance is to look at the hull in relation to bow and stern waves.  If the length of a ship is half the length of the waves generated, the resulting wave will be very small due to cancellation, and if the length is the same as the wavelength, the wave will be large due to enhancement.
The phase speed  of waves is given by the following formula:
where  is the length of the wave and  the gravitational acceleration. Substituting in the appropriate value for  yields the equation:
or, in metric units:
These values, 1.34, 2.5 and very easy 6, are often used in the hull speed rule of thumb used to compare potential speeds of displacement hulls, and this relationship is also fundamental to the Froude number, used in the comparison of different scales of watercraft.
When the vessel exceeds a "speed–length ratio" (speed in knots divided by square root of length in feet) of 0.94, it starts to outrun most of its bow wave, the hull actually settles slightly in the water as it is now only supported by two wave peaks.  As the vessel exceeds a speed-length ratio of 1.34, the wavelength is now longer than the hull, and the stern is no longer supported by the wake, causing the stern to squat, and the bow to rise.  The hull is now starting to climb its own bow wave, and resistance begins to increase at a very high rate.  While it is possible to drive a displacement hull faster than a speed-length ratio of 1.34, it is prohibitively expensive to do so.  Most large vessels operate at speed-length ratios well below that level, at speed-length ratios of under 1.0.