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This guide describes a practical step-by-step process for identifying actions that can be taken to reduce potential drought-related impacts before a drought occurs. Step 1 begins with making sure that the right people are brought together and supplied with adequate data to make informed and equitable decisions during the process. Steps 2 and 3 narrow the focus of the study by identifying high priority drought-related impacts that are relevant to the user’s location or activity. Step 4 demonstrates that in order to reduce the potential for the identified impacts to occur in the future, it is necessary to understand the underlying environmental, economic, and social causes of the impacts. Finally, Steps 5 and 6 utilize all of the previous information to identify feasible, cost-effective, and equitable actions that can be taken to address the identified causes. In this manner, true drought vulnerabilities can be addressed that will subsequently reduce drought-related impacts and risk.