This paper discusses the goal of drought contingency planning, which is to prepare (in advance) policies and procedures for implementing measures in response to drought that minimize the risk and mitigate the impacts of water shortage. Drought contingency planning consists of five basic steps: assess the vulnerability of the water supply and/or water supply system to droughts of varying intensity and duration; define system-specific triggering criteria for the initiation and termination of drought response measures in stages matched to the severity of the situation; identify and evaluate short-term water supply and demand management response measures; design a plan which includes trigger conditions, multiple response stage, response measures, and monitoring, notification, and enforcement procedures; and, adopt the plan and any associated legal instruments (e.g., rules, ordinances).