Gas which accretes onto the black holes in active galactic nuclei (AGN) must come from regions associated with the interstellar medium of the host galaxy and ultimately cross the horizon, a range of radii from the black hole spanning many decades. The innermost region produces the most energetically important manifestations of accretion: continuum X-ray and UV emission. However, much of what we observe from AGN comes from considerably further away, near a radius of 1 pc. This region is the apparent origin for obscuration seen in Seyfert galaxies, and for outflows, including the partially ionized outflows seen in the UV and X-rays. We present calculations of active galactic nucleus winds at ∼parsec scales from radiation hydrodynamic simulations. We discuss prospects of first principle modeling of such observational characteristics of AGN as X-ray line emission and absorption along with the origin of the observational dichotomy between Seyfert 1 and Seyfert 2 galaxies. We also discuss some interesting effects associated the formation of narrow, gravitationally distorted spectral lines from fast winds close to the Black Hole.