California is in the third year of a severe drought. Our state’s climate is characterized by extreme variability alternating between prolonged droughts and major floods, a situation that is predicted to worsen as climate change progresses. Yet, we fail to manage our state’s finite water resources to prepare for increasing exposure to more severe and prolonged droughts. All of these recommendations respond to the drought. All would also set the stage for a more reliable long-term water supply, a more resilient economy, and a healthier environment.