Australia experienced the worst and most consistent period of drought in its recorded history over much of the past decade. The Murray River failed to reach the sea for the first time ever in 2002. Fires swept much of the country, and dust storms covered major cities for days. Australia's sheep population dropped by 50 percent, and rice and cotton production collapsed in some years. The drought ended in 2010 with heavy rains and flooding. Australia's Millennium Drought is a wake-up call for residents of the drought-plagued southwestern US where droughts have devastating consequences to the region and to the nation. The US can avoid the worst, however, if they pay attention to Australia's experience and learn the right lesson. Both Australia and the US have dry regions where thirsty cities and irrigated agriculture are exhausting water supplies and damaging ecosytems. The Colorado River no longer flows to the sea in most years. Changing global climate in both countries increases the risk of drought. As the climate continues to change, smart water planning may help ease the impacts of unexpected and severe droughts in the US that now appear inevitable.