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Past drought experiences show that the failure of water supply systems to meet demands during droughts can be reasonably described in terms of the tangible monetary expenditures and economic losses related to emergency actions. A framework is presented that allows planners of water supply systems and utility managers to formulate least‐cost drought emergency plans, and to systematically examine the trade‐off between the expected value of the long‐term cost of coping with water supply deficits and the cost of the longterm water supply/conservation projects. The suitability of the framework as an analytical tool for water deficit planning is illustrated in a case study of the water supply system of Springfield, Illinois. The analysis shows that the optimal short‐term programs for the mitigation of potential shortages of water during droughts consist of a combination of moderate demand and loss reduction measures coupled with intensive utilization of emergency water supply systems. However, the choice of demand reduction measures should involve a certain degree of discrimination among various user sectors in order to avoid substantial losses to the local economy.
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Dziegielewski et al. (1986) studied this question.
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