Drought can be defined as lack or shortage of water for an unusually long period. It can occur at any place causing anything from inconvenience to deaths through famine. When the rains fail, the effect can be disastrous; no drinking water, crops die, people starve. In industrial communities, droughts can cause water scarcity and closing down of various economic activities. In this Unit, the focus of discussion will be drought, its characteristics, predictability, forecasting and warning System.