Pseudospectral methods are frequently used in the horizontal directions in large-eddy simulation of atmospheric flows. However, the same approach often creates unphysical oscillations for scalar fields if there are horizontal heterogeneities in the sources and/or sinks, as is usual in air pollution problems. A hybrid approach is developed to combine the use of pseudospectral representation of the velocity field and bounded finite-volumes for the scalar concentration. An interpolation scheme that yields a divergence-free interpolated velocity field is derived and implemented, and its importance is illustrated by two sample applications.