Following the drought of 2006 and 2007, the Lower Colorado River Authority (LCRA) developed a medium-range forecast model to incorporate stochastically generated hydrology. The model generates inflows and evaporation forecasts by Monte Carlo sam-pling from monthly historical records over 75 y. by applying Markov chain methods conforming to historical cumulative inflow frequencies. LCRA has used the model continuously since its development, including during the severe multi-year drought from 2008 to 2016, when it was used to forecast system storage and lake level outcomes. During this period, LCRA revised the model to reflect three different reservoir operating plans, changes in environmental flow requirements, and to incorporate newly available El Niño-Southern Oscillation (ENSO) forecasts and newer hydrologic records. LCRA used the water supply forecasts for contin-gency planning during the drought. There are many continuing users for lake level and storage forecasts: water treatment plant operators; recreational business owners, such as boat ramp and marina operators; water conservation managers; power plant operators; and downstream agricultural producers and irrigators. Each user has unique needs for drought response lead times and has different levels of risk aversion. In addition to forecasting and contingency planning, the stochastic model has been used to re-evaluate lake operating guidelines and management strategies originally developed using deterministic methods. The use of stochastic modeling introduced new planning and policy challenges, including identifying risk tolerances and determining the significance of drought events. Future model improvements may include adjustments for deep persistence low rainfall runoff and migration to a more detailed river system modeling platform.