Natural resource managers face increasing challenges in dealing with drought. As competition for water increases between its various uses (water supply, energy demands, ecological services, recreation, and other environmental and ecological needs), our ability to forecast the onset and termination of drought becomes ever more important. This is particularly true given forecasts of the increasing frequency and intensity of drought suggested by climate change models. This talk presents a brief review of history of drought forecasting and its application in resource management. Drought indicators currently in practice are explored as well as emerging indicators. Additionally, the fundamentals of drought planning are reviewed, particularly the challenges of developing robust policies that work well when future conditions are difficult to predict. The challenges in applying these forecasts associated with the forecast accuracy are discussed, as are other limitations. Finally, the potential for improving our ability to predict regional drought in the near future are explored.