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The potential impacts of drought on the State of New Mexico are many and varied and can affect a wide range of economic, environmental and social activities. The relative vulnerability or risk exposure of these activities to the effects of drought usually depends on the types of water demands, how these demands are met and on corresponding water supplies available to meet these demands.

Those human and natural resource activities depending solely on rainfall and soil moisture, such as dry-land farming, ranching, and some environmental water uses, are most at risk from drought. These activities can suffer discernible effects even with droughts of short duration.

Still at relatively high risk, but somewhat less exposed, are those water uses depending on in-stream flows, which includes run-of-the-river irrigation, aquatic, wetland and riparian environmental communities, and recreational water uses. Less exposed to the risks of drought in New Mexico are many urban and agricultural water users who rely on surface water reservoir supplies or on groundwater resources that are not dependent on high rates of aquifer recharge or adversely affected by concentrated levels of high pumping.

The level of risk, which includes vulnerability and hazard, has been considered in the design of the structure of the New Mexico Drought Plan and is integrated into the planning, mitigation, and response activities of the Plan.