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Google Wave begin support for groups, currently, you can add a Google Group to a wave. Unlike other group conversations, however, group waves will only show up in Google Wave, not in Google Groups interface.

Steps to do it:

1. If you don’t already have, then first create a Google Group; When creating a group, note that most of the settings of Groups are respected. You’ll have to add Wave users with their username@gmail.com address (later support for getting username@googlewave.com will come). Under ‘Appearance’ setting, chose an image that’ll help you identify group in Wave. Learn more here.
2. Add new group into your contact list, Click ‘+’ button in lower right corner of contacts panel, type in name of group (including @googlegroups.com) and hit ‘Submit’.
   
3. Add group to a wave, just like any of your other contacts.
4. Find waves with your group, either by clicking on group’s contact and then on “Group Waves” button or by searching for “group:groupname@googlegroups.com”. To create a quick shortcut to get to these, try saving your search! More info here.
   
5. Follow group waves! using follow feature to make them appear in your inbox when they’re updated.

Google Groups support joins Google Wave