The drought monitoring tool was developed for the Carolinas in response to specific challenges, including an intense 4-vear drought and negotiation of new dam operation licenses. It evolved from discussions between researchers, state-level resource agencies, and stakeholders about drought information needs and strategies for managing water in times of scarcity. The tool's resulting array of drought indices and its flexibility with respect to spatial and temporal aggregation reflect the diverse requirements of regional decision makers. Similarly, consideration of decision makers' needs should influence NOAA and other federal agencies planning a National Integrated Drought Information System (NIDIS). This comprehensive early warning system and proactive model for anticipating and reducing drought impacts will require coordinate activities at both national and regional levels. Nationally, agencies must work together to improve observations required for drought monitoring, modeling of the climate system, prediction, research, and data delivery. Clearly, NIDIS must be integrated with other national or international-scale observation efforts such as the Global Earth Observation System of Systems. Efforts should also be made to inventory regional resources and to encourage development of new monitoring tools at a subnational level where the social and economic impacts are sharply expressed and where mitigation and adaptation policies intersect. Stakeholders should, guide the scope and design of such tools so that they address decision makers' most salient challenges. State-level drought response plans provide a foundation and stimulus for the monitoring tools that will be required at a subnational level. Of course, the needs of stakeholders will evolve and so too must their decision-support tools. Even in the case of long-term agreements, such as those involved with FERC relicensing, mechanisms must exist to allow management practices to adapt. In the case of the Catawba-Wateree Basin, a Drought Management Advisory Group has been formed to review, update, and improve the low-inflow protocol during the new license term. The Carolinas drought monitoring tool will be an integral part of that process and, therefore, must mature in ways that address decision makers' future needs. © 2008 American Meteorological Society.