The Countermeasures for Addressing Long-lasting Severe Drought in Australia and China project is funded under AusAID’s Australia China Environment Development Partnership. The project aims to improve policies and countermeasures for severe drought in China and Australia and build partnerships that increase the capacity of experts and officials. This report is one of a series of reports for the project that explore the context, policy and management of drought and water resources in China and Australia. The reports will contribute to a plan for collaboration between the project partners: ABARES and China’s Remote Sensing Technology Application Center. This report details the Australian context of drought policy and management.