We model cumulus clouds as transient diabatic plumes, and present a single-fluid formulation for the study of the dynamics of developing shallow cumulus clouds. The fluid, air, carries water vapour and liquid water as scalars that are advected with the flow. We employ the Boussinesq approximation and a simplified form of the Clausius-Clapeyron law for phase changes. We use this formulation to study the ambient conditions required for the formation of cumulus clouds. We show that the temperature lapse rate in the ambient and the relative humidity of the ambient are crucial in deciding when cumulus clouds form. In the phase-space of these two parameters, we determine the boundary that separates the regions where cumulus clouds can form and where they cannot.