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High Quality Content by WIKIPEDIA articles! Prolonged, large-area droughts are among Canada s costliest natural disasters having major impacts on a wide range of sectors including agriculture, forestry, industry, municipalities, recreation, human health and society,and ecosystems. They frequently stress water availability by depleting soil moisture, reducing stream flows, lowering lake and reservoir levels, and diminishing groundwater supplies. This ultimately affects several economic activities including for example, decreased agricultural production, less hydro-electric power generation, and increased freshwater transportation costs. Droughts also create major environmental hazards such as reduced water quality, wetland loss, soil erosion and degradation, and ecological habitat destruction. Although most regions of Canada have experienced drought, southern regions of the Canadian Prairies and interior British Columbia are most susceptible.