Drought is a prolonged period of low precipitation (rain, snowfall, or snowmelt) resulting in a water shortage. Ecosystems, agriculture, energy production, and urban areas are all being impacted by these phenomena. The objective of this chapter is to provide a literature review of the current state of the increasing impact of drought and declining rainfall on water supplies. Drought leads to a decrease in water flow, a deterioration in water quality, and an imbalance between aquatic and terrestrial ecosystems. This, in turn, leads to a decline in agricultural production, job losses, and a threat to food security. Hydroelectric output, a crucial component of renewable energy, is also affected. Actions can increase resilience in the face of growing water resource scarcity by improving water use efficiency, reducing costs, and mitigating environmental impact through measures such as water conservation, wastewater reuse, infrastructure upgrades, and the use of advanced technologies, including precision irrigation systems.