The major objective of this study was to investigate the impact of 2001 and 2002 droughts on the rural communities of Cabri and Stewart Valley in Saskatchewan with emphasis on water resources. These impacts were studied in the context of the communities, as well as in the context of the larger region?Rural Municipality of Riverside (No. 168 housing the community of Cabri) and Rural Municipality of Saskatchewan Landing (No. 167 housing the community of Stewart Valley). Drought impacts were assessed in terms of bio-physical changes as well as economic changes that were observed during the drought years.