Persistent drought and climate change affect water and energy costs, and hence choices made by farms, cities and industrial water and energy users, as well as energy and water providers’ operations. This project examines potential climate change and variability adaptation strategies related to water and energy in the Colorado River and Rio Grande Basins, including northwestern Mexico. Researchers are investigating how climate influences the market price of water and developing a menu of water and energy supply reliability tools with guidelines for using these tools.