A general prescription for dynamic renormalization has been found for discrete hydrodynamics (giving equations of motion for large-cell variables from those for smaller cells). The renormalization transformation is calculated explicitly, and found to consist of purely algebraic relations among a set of parameters which describe (arbitrarily accurately) the equations of motion. The discrete theory is therefore substantially easier to renormalize than continuum theories. The small-scale parameters have previously been calculated numerically for a soft-sphere model; it is therefore now possible to calculate transport coefficients by renormalization. Preliminary results indicate this method is substantially more efficient than earlier (Green-Kubo) methods.