Conventionally droughts are studied in terms of their dimensions (severity, duration and areal extent), without specifying the affected system. The paper presents an innovative system-based approach for drought analysis, which can lead to rational decisions for combating drought. Concepts of water scarcity (drought, water shortage, aridity and desertification) are viewed within the perspective of this new approach. The paper focuses also on operational water management in the presence of drought. Starting from the needs for such management, the affected system is defined and the related quantities are identified. Also, sub-systems are considered which allow the establishment of the link between specific variables Water Resour Manage